BMO whole life insurance review (2026)

PolicyAdvisor Rating

We give BMO whole life insurance 4 out of 5 for its non-participating design featuring an annual Performance Bonus and smoothing mechanism. The company grows cash value through this bonus, with rates declared annually and never negative.

The bonus is funded by a diversified portfolio managed by BMO Asset Management and BMO Capital Markets and is smoothed to reduce volatility. It automatically buys paid-up additions (PUAs), increasing both the death benefit and cash value without extra premiums. While bonus rates may change each year, this structure provides more stable growth than traditional dividend-based participating policies.

BMO offers two non-participating options:

• Estate Protector: designed for long-term estate planning
• Wealth Accelerator: focused on higher early cash values and liquidity

8-year average: 5.63% (non-negative)

Overall, the average performance bonus rate over more than 8 years is 5.63% (non-negative). However, future bonus rates are declared annually and may change. 

BMO Insurance portfolio breakdown

From a portfolio standpoint, BMO Insurance allocates 69.1% to fixed income managed by BMO Asset Management Inc., providing steady income with low volatility. Meanwhile, Capital Markets handles the remaining 30.9% in enhanced equity via option strategies that limit downside risk. 

Rating Methodology

PolicyAdvisor rates BMO whole life insurance 4/5 as the best non-participating plan based on six key factors: early/long-term cash value growth, premium options, bonus stability, fees, riders, and issue ages.

Pros and cons of BMO whole life insurance

In particular, BMO whole life Insurance plans combine guaranteed benefits with flexible features, while some limitations may impact your decisions depending on your goals.

Pros:

• Annual performance bonus purchases paid-up additions to grow death benefit and cash value
• Guaranteed cash values with level, predictable premiums
• Flexible payment terms (10-pay, 20-pay, or pay to age 100) and premium switch available after year 2
• Access cash value through policy loans or withdrawals
• Premium offset stops out-of-pocket premiums while maintaining coverage
• Backed by BMO Wealth Management’s diversified portfolio and institutional oversight
• BMO Asset Management and Capital Markets deliver stable, smoothed returns

Cons:

• As a non‑par policy, it does not share in participating surplus or dividends. Growth relies on guaranteed values plus the declared Performance Bonus (non‑negative, not fixed)
• Flexible options such as premium switch, premium offset, additional payments have conditions and may trigger tax, or impact policy values
• An annual policy fee (currently $50 while base premiums are payable) increases total cost slightly

Beyond these pros and cons, BMO’s two plans, Estate Protector and Wealth Accelerator, offer tailored features for different goals. Explore the details below.

BMO whole life insurance products and features

BMO offers two distinct options, including Estate Protector and Wealth Accelerator.

• Estate Protector is designed for clients focused on long-term estate growth and wealth transfer, combining sustained cash value with increasing death benefits
• Wealth Accelerator is aimed at individuals and business owners who want higher initial cash values and early liquidity to support financial flexibility in the first years of coverage

Both plans provide guaranteed cash values, level premiums, and the potential for an increasing death benefit through the annual Performance Bonus. Both non-participating plans offer the following:

• Guaranteed level premiums
• 10‑pay, 20‑pay, or to age 100
• Premium Switch available after year 2 (conditions apply) 
• Annual non‑negative performance bonus buys paid‑up additions 
• Optional riders: Term (10–30 years), critical illness, accidental death, children’s term, waiver of Premium 
• Health Advocate Plan included (medical information and support services)

In addition to strong performance bonuses that grow your coverage and cash value annually, BMO prioritizes policyholders’ convenience through these client-focused features: 

• Premium offset and policy loans can reduce out-of-pocket costs once sufficient cash value exists (conditions and interest apply; may reduce policy values and death benefit)
• Health Advocate Plan provides second opinions and navigation support
• Policies are designed to remain exempt under Canada Revenue Agency (CRA) when kept within Maximum Tax Actuarial Reserve (MTAR) limits
• Premium Switch becomes available after the second policy year; switching premium schedules may reduce, maintain, or increase future premiums 
• Policy loans typically up to 90% of cash value; tax implications and interest may apply

Estate Protector vs. Wealth Accelerator

BMO’s two non-participating whole life products are designed for different goals, but both offer guaranteed cash values, level premiums, and the potential for growth through the annual Performance Bonus.  The table shows how Estate Protector stands in comparison to Wealth Accelerator through the lens of this table.

Who should consider BMO whole life insurance

BMO whole life insurance suits those seeking lifelong protection with built-in growth and flexibility. PolicyAdvisor rates BMO Insurance 4/5 for its non-participating design that matches participating plan returns without dividend uncertainty. Ultimately, you should consider BMO whole life insurance if you:

• Want predictable, permanent coverage with growth
• Are planning for estate transfer or charitable giving
• Prefer flexible premiums and access to cash values
• Run a business and may use policy values as collateral (subject to lender rules)

How to buy BMO whole life insurance with PolicyAdvisor

Ready to explore BMO Whole Life insurance? Get a personalized BMO whole life illustration and compare it to top Canadian insurers with PolicyAdvisor’s licensed experts. 

Get covered in three easy steps:

1. First, speak with a licensed PolicyAdvisor expert

2. Then, review BMO Estate Protector vs. Wealth Accelerator alongside top competitors

3. Finally, receive a personalized illustration and finalize your application online

PolicyAdvisor licensed experts help you compare options and find the perfect plan for your goals.

Is BMO whole life insurance a participating plan?

No. BMO offers two non‑participating designs, Estate Protector and Wealth Accelerator. Instead of dividends, BMO declares an annual Performance Bonus (non‑negative by design) that buys paid‑up additions and can increase policy values. Bonus rates are declared each year and may change.

How does BMO calculate bonuses and cash values?

BMO declares a Performance Bonus annually, informed by diversified fixed income and enhanced equity exposure with return smoothing. The bonus will not be negative. However, future rates may change. Paid‑up additions purchased by the bonus increase policy values, subject to policy rules and taxation if values are accessed.

Can I access my policy’s cash value in BMO whole life insurance plans?

Yes. You can borrow against cash value (interest applies), make withdrawals, or use premium offset once values are sufficient. These actions can reduce cash value and death benefit and may have tax implications. Bonus crediting continues per policy terms, but net growth may be impacted by loan interest and policy charges.

What differentiates Estate Protector from Wealth Accelerator?

Estate Protector favours maximum estate value and long‑term death benefit growth. Wealth Accelerator on the other hand, favours higher early cash values, often preferred by business owners or investors needing earlier liquidity or collateral potential. An advisor can show both on a side‑by‑side illustration for your age and health class.

Who manages the investments backing my BMO whole life insurance policy?

BMO Asset Management and BMO Capital Markets oversee a diversified portfolio (primarily high‑quality fixed income with enhanced equity exposure via options). The goal is stable, smoothed returns to support the annually declared, non‑negative Performance Bonus that purchases paid‑up additions. Future bonus rates are not guaranteed.