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BMO Life Insurance Review

by Mark Cluett
6 min read

Key Takeaway

  • BMO Life Insurance is a competitively priced term life insurance offering focused on the individual consumer with ability convert into a broad suite of proprietary permanent products.

Best Life Insurance For Affordability

BMO Whole Life Insurance

BMO Insurance

A

AM Best
financial strength rating

PolicyAdvisor.com Rating

Best Life Insurance For Affordability

BMO Whole Life Insurance

BMO Insurance

A

AM Best
financial strength rating

PolicyAdvisor.com Rating

BMO Life Insurance Review

BMO term life insurance is a great option for individuals, couples, or business owners. It can cover mortgages and other debts, final expenses, and provide for dependents and also be used to protect businesses and their key employees. 

BMO’s life insurance plans offer terms ranging from 10 to 30 years. All term life plans can be converted to a permanent plan at any time before age 70, and Term 10 plans can be exchanged for longer terms. Term 10, 15 and 20-year plans are renewable and convertible, whereas Term 25 and 30 plans have guaranteed premiums and are convertible, although not renewable. 

There are riders for critical illness, accidental death, waiver of premium in case of disability. One can also add a children’s life insurance rider.

Another great feature of BMO Insurance is its unique Compassionate Benefit Program. This is a non-contractual cash benefit offered by BMO Insurance to term life policyholders with a limited life expectancy who may require a source of funds to help them manage their medical bills and unexpected financial costs. 

For term life policy holders, an initial advance of up to 50% of the base coverage (maximum of $250,000) may be paid out if the policyholder is diagnosed with a terminal illness with life expectancy of 12 months or less. This is available on individually-owned single and joint life policies (max of 2 insured) as well.

Pros

  • Value for money pricing
  • Multiple term coverage options available
  • Ability to exchange shorter term policies (10 years, 15 years, 20 years) into longer term policies (25 year and 30 year coverage options)
  • Compassionate benefit program allowing advance of term life coverage amount for policy holders needing financial support while dealing with a terminal illness
  • Options to convert into multiple types of permanent products

Cons

  • No online account
  • Only issues paper policies, no digital option
  • Longer-term products (Term 25 and Term 30) are not renewable
BMO Term Life Insurance Pricing Representative values, based on non-smokers in good health. $500,000 coverage, 20-year term.
AgeMaleFemale
30$32.85$22.95
35$33.50$25.20
40$50.85$36.45
45$81.00$56.25
50$139.95$92.25
55$252.45$169.65
60$447.75$312.30
65$715.50$486.80

Who is BMO Insurance?

BMO Insurance is a member of the BMO Financial Group, which was founded in 1817, and is another of Canada’s largest financial institutions. Operating as a separate business unit, BMO Insurance offers term and permanent life insurance, accident, travel, and critical illness insurance. BMO Insurance also offers income annuities and guaranteed investment funds. BMO life insurance portfolio was bolstered by the acquisition of AIG’s life insurance business in 2009.

BMO Insurance: Quick Facts

  • Founded: 1817
  • Headquarters: Toronto, Ontario
  • AM Best Rating: A (Excellent)
  • Better Business Bureau Accreditation and Rating: N/A
  • Assets: $11.2-billion
  • Annual Premiums: $2.0-billion

Does BMO Insurance offer term life insurance?

Yes, BMO Insurance offers their simply named Term Life with many options to personalize coverage for those applying.

  • Medical underwriting is generally required depending on age of the applicant and amount of insurance applied for 
  • Premiums are guaranteed
  • Term 10 plans have an exchange program, where the policyholder can renew for another eligible term policy after 1 year but before 5 years of their initial term 10 coverage.

What term life insurance amounts and coverage does BMO Insurance offer?

  • Available Term Lengths: BMO Insurance offers term lengths of 10, 15, 20, 25, and 30 years. BMO also offers a term 100 permanent product
  • Available Term Types: Guaranteed level premiums
  • Maximum Amount of Coverage: $10,000,000
  • Convertibility: All policies are convertible to a permanent life insurance policy before the policyholder reaches an age nearest of 70.
  • Renewability: Available on term 10, 15 and 20 year coverage products

What other insurance coverage does BMO Insurance offer?

In addition to Term Life insurance, BMO Insurance also offers:

  • Critical illness insurance (both as a rider on their life insurance products, and as a sole offering)
  • Permanent life insurance through Term-100, Whole life and Universal life products
  • Guaranteed life insurance with no medical underwriting, for those with severe health considerations
  • Accidental Death Benefit insurance 
  • Travel insurance

Is BMO Insurance right for you?

BMO Insurance offers unique life insurance coverage products that are a great fit for many Canadians consumers that value the convenience offered by non-medical products. As insurance advisors for BMO Insurance’s life insurance products, we can help you decide if BMO Insurance products are the best fit for you.

As Canada’s best online life insurance advisor, we will assist you in comparing and choosing products across all our partner companies. Speak to our licensed advisors and we will be able to assist you in finding you the best coverage for your needs.

The information above is a brief representative summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, termination and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed above are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.

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