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- Both Manulife and BMO are well-established providers of term life insurance offering reliable coverage with strong conversion and renewability features
- Manulife Family Term provides flexible term options such as T10, T20, and T65, along with multi-life coverage and wellness integration through Vitality
- BMO offers fixed-term options, including 10, 15, 20, 25, and 30 years, with a simple and easy-to-understand policy structure
- Manulife has a slight edge and is better suited for those who want customization, long-term planning flexibility, and multiple coverage structures
Choosing the right term life insurance company is not just about finding the lowest premium; it is also about selecting a provider whose product structure aligns with your financial strategy, risk profile, and long-term planning goals. Two names that frequently come up in this decision-making process are Manulife and BMO life insurance.
At first glance, both insurers offer what appears to be similar term life insurance: level premiums, fixed coverage periods, and the ability to convert to permanent insurance. However, once you look beyond the surface, the differences become much more meaningful. These differences are not just about features; they influence how effectively a policy can adapt to changing life circumstances, support complex financial planning, or scale with future needs.
Understanding where each insurer excels and where it may fall short can help you make a more informed decision. Read on to learn more.
Manulife stands out for flexibility, offering a wide range of term options, multi-life coverage, wellness integration through Vitality, and strong conversion features.
BMO stands out for simplicity, offering fixed-term options, high coverage limits, and a straightforward policy structure designed for basic protection needs.
Quick verdict
Choose Manulife if:
- You want term options like T10, T20, T65
- You need multi-life coverage for families or business partners
- You value wellness benefits through programs like Vitality
Choose BMO if:
- You prefer fixed-term options such as 10, 15, 20, 25, or 30 years
- You want a simple and easy-to-understand policy structure
Why Manulife vs. BMO is a common comparison
BMO and Manulife are frequently compared because they represent two popular insurers within the Canadian term life insurance market. While both companies are well-established and financially strong, their approach to term insurance and customer needs differs significantly, making them natural alternatives for comparison.
One of the many reasons why this comparison is so common is that both insurers are widely accessible and competitively priced across a range of demographics. Whether you are a young professional purchasing your first policy or a high-income earner seeking substantial coverage, both Manulife and BMO are likely to appear on your shortlist. This overlap in market presence naturally leads to direct comparisons.
The comparison also becomes particularly important in the context of long-term planning. Term life insurance is often purchased with future conversion in mind, and the way a policy is structured today can influence its usefulness years or even decades later. By comparing Manulife and BMO, buyers can better understand how each insurer supports or limits these long-term strategies.
Manulife vs. BMO Insurance at a glance
Before comparing specific product features, it’s important to understand the overall positioning of Manulife and BMO Insurance within the Canadian insurance market. Both are well-established institutions with strong financial backing, but they approach insurance product design differently based on their broader business models. The table below provides a quick snapshot of how these companies compare.
Company snapshot: Manulife vs. BMO
| Features | Manulife | BMO Insurance |
| Founded | 1887 | 1817 (Bank of
Montreal); BMO Life Insurance formed later |
| Headquarters | Toronto, Ontario | Toronto, Ontario |
| Total assets (insurer) | $1.3T | $20.1B |
| AM Best rating | A+ | A |
| LICAT Ratio | 137% | 130% |
About Manulife term life insurance
Manulife term plans come in two variations: Manulife Family Term and Manulife Family Term with Vitality Plus. These plans are designed for needs ranging from basic income protection to more complex financial planning scenarios involving multiple insured individuals.
One of the defining characteristics of Manulife’s term plans is the range of term options available. Policyholders can choose from multiple term lengths, including T10, T20, and T65, allowing them to align their coverage with specific financial timelines.
In addition to its core offerings, Manulife also provides enhanced features through its Manulife Vitality program. This feature introduces a wellness component to life insurance, rewarding policyholders for maintaining healthy lifestyles.
Key features of Manulife term life insurance
1. Level, guaranteed premiums: Premiums remain fixed throughout the selected term, ensuring stability in insurance costs. This predictable structure helps policyholders plan their finances with confidence over the long term
2. Multiple term options: The plan offers term options such as T10, T20, and T65, allowing coverage to align with different financial needs. These options support goals like mortgage protection, income replacement, and long-term estate planning
3. Convertibility: Policyholders can convert their term life insurance into permanent coverage without providing medical evidence. This feature helps preserve insurability and offers flexibility if long-term coverage needs change
4. Multi-life flexibility: The policy allows multiple individuals to be covered under a single plan, making it a cost-efficient option for families or business partners seeking shared coverage
5. Manulife Vitality integration: The plan can be integrated with Manulife Vitality, a wellness rewards program that encourages healthy lifestyle choices. Policyholders can earn incentives and rewards for maintaining good health habits
6. 30-day money-back guarantee: A 30-day money-back guarantee is included, providing a risk-free trial period. This allows policyholders to review the policy and cancel within the period if it does not meet their needs
Pros and cons of Manulife term life insurance
| Pros | Cons |
| High coverage limits | Vitality benefits are limited to select plans |
| Strong conversion flexibility | Bundled coverage is not available |
| Level premiums | |
| Multi-life structures | |
| Wellness-linked benefits |
About BMO term life insurance
BMO’s term life insurance offerings are designed with simplicity in mind. The company provides a range of fixed-term options, typically spanning 10 to 30 years, which allows policyholders to select coverage that aligns with specific financial obligations such as mortgages or income replacement periods.
The structure of BMO term life insurance is straightforward, which means policyholders pay level premiums during the selected term, and coverage remains in place as long as premiums are paid.
Key features of BMO term life insurance
1. Fixed-term options: BMO term life insurance offers a range of fixed-term options, including Term 10, 15, 20, 25, and 30 years. This flexibility allows policyholders to choose coverage that aligns with specific financial timelines, such as mortgages or income protection needs
2. High coverage limits: The policy provides coverage amounts of up to $30 million, making it suitable for both individuals seeking basic protection and those with higher-value financial responsibilities or complex planning needs
3. Level premiums: Premiums remain stable throughout the selected term, ensuring predictable insurance costs. This consistency helps with long-term budgeting and financial planning
4. Renewable coverage: Policies can be renewed at the end of the term without requiring a medical exam. However, premiums typically increase at renewal based on the policyholder’s age at that time
5. Conversion option: The policy includes the option to convert to permanent life insurance without undergoing new medical underwriting. This provides flexibility for those who may want lifelong coverage in the future
6. Term exchange: Policyholders can exchange their existing policy for a longer-term option without additional medical underwriting. T10/15 can be exchanged for 20, 25, or 30-year term lengths
7. Coverage structures: BMO offers different coverage structures, including single life and joint last-to-die options. These choices make it suitable for individuals, couples, and estate planning needs
Pros and cons of BMO term life insurance
| Pros | Cons |
| Simple and easy to understand term policy | Limited customization |
| Term exchange option is available | No wellness features |
| Strong renewal and conversion features | Less flexible |
| Provides high coverage limits of up to $30 million |
Manulife vs. BMO comparison
| Features | Manulife | BMO Insurance |
| Flagship term product | Manulife Family Term (+ Family Term with Vitality Plus) | BMO Term Life (Term 10/15/20/25/30) |
| Term length options | T10, T20, T65 | 10, 15, 20, 25, 30 years (fixed) |
| Coverage range | $100K – $20M (Family Term); $250K – $25M (Vitality Plus) | $100,000 – $30M |
| Renewability | T10/T20 to age 85; T65 to age 65 | Term 10/15/20 renewable up to age 85; Term 25 and Term 30 is not renewable |
| Convertibility | To permanent, no medical evidence (age varies by plan) | To permanent before age 71, no medical evidence |
| Coverage structures | Single or multi-life | Single, combined life, joint last-to-die |
| Living benefit | Terminal illness benefit up to 50%, capped at $250K (Family Term); Vitality Plus adds bereavement counselling up to $1,000 | Available as an optional rider |
| Riders available |
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Our Ratings
Who should choose Manulife?
Manulife is a good choice for those who:
- Need multi-life or business coverage: Manulife is well-suited if you are insuring multiple individuals under one policy (such as spouses or business partners) or require coverage structured for business purposes
- Want customization and flexibility: Manulife offers a wider range of structuring options, including varied term lengths, layering strategies, and the ability to tailor coverage based on evolving financial goals rather than sticking to a rigid format
- Value wellness incentives: Manulife integrates wellness-focused features (such as its Vitality program), allowing policyholders to engage in healthier lifestyle habits and potentially benefit from rewards tied to those activities
Who should choose BMO?
BMO becomes a better choice for those who:
- Want simple, fixed-term coverage: BMO focuses on straightforward term policies with clearly defined durations, making it easier to select coverage for 10, 15, 20, 25, and 30 years
- Prefer to exchange the term: You can exchange your BMO term life insurance policy for a longer term, such as Term 20, 25, or 30, without any new medical evidence
- Value higher coverage limit: BMO provides coverage of up to $30 million, beneficial for high-net-worth individuals
Final Verdict: Manulife or BMO
1. Best overall: Manulife
Manulife takes the lead overall due to its broader product range, strong financial backing, and added features like wellness integration. It caters to individuals looking for basic coverage, to families, or professionals who want more flexibility and enhanced benefits.
2. Best for flexibility and product range: Manulife
With multiple product tiers, multi-life coverage options, and programs like Vitality, Manulife offers a more adaptable insurance experience. It is especially suitable if your needs may evolve over time.
3. Best for simplicity and ease of understanding: BMO
BMO stands out for its straightforward, no-frills approach to term life insurance. Its fixed-term options and clear structure make it easier for first-time buyers to understand and manage.
4. Best for straightforward conversion strategy: BMO
BMO offers standard, easy-to-understand conversion options to permanent insurance. While less flexible than some competitors, it appeals to those who prefer simplicity over customization.
5. Best for family or multi-life coverage: Manulife
Manulife’s multi-life policy options make it a stronger choice for families or business partners looking to consolidate coverage under one plan.
6. Best for engagement and added benefits: Manulife
With the Vitality program, Manulife creates a more interactive insurance experience by rewarding healthy behaviour, adding value beyond traditional coverage.
7. Best for flexibility and customization: Manulife
Manulife offers significantly more flexibility with multi-life coverage, multiple term structures, and wellness integration through the Vitality program. BMO remains more rigid with fixed-term options.
Frequently asked questions
Which is better: Manulife or BMO for term life insurance in Canada?
Manulife is generally a better fit for individuals who need flexibility, such as those looking to insure multiple people under one policy, incorporate long-term planning strategies, or potentially convert to permanent insurance later. Manulife also offers the benefit of wellness-linked rewards.
Is Manulife cheaper than BMO for term life insurance?
Both Manulife and BMO are on par when it comes to term life insurance pricing. The actual pricing between Manulife and BMO can vary significantly depending on factors such as age, health, smoking status, and coverage amount, so there is no universal answer to which insurer is cheaper.
Can I convert both Manulife and BMO term policies to permanent insurance?
Yes, both Manulife and BMO allow policyholders to convert their term life insurance policies into permanent life insurance without requiring additional medical underwriting, which is a critical feature for long-term planning. This means that even if your health changes after purchasing the policy, you can still transition to permanent coverage.
Which insurer is better for families or joint coverage?
Manulife is generally the stronger option for families or individuals seeking joint coverage because of its ability to support multi-life policies under a single contract. This allows multiple insured individuals to be covered together, which can simplify administration and potentially reduce costs. It is particularly useful for couples, families, or even business partners who want coordinated coverage. So, if your goal is to build a comprehensive family insurance strategy rather than simply cover one individual, Manulife typically provides more options and better long-term adaptability.
Which is better for first-time buyers: Manulife or BMO?
For first-time buyers, the choice between Manulife and BMO often comes down to how comfortable you are with complexity. BMO is usually the better starting point for individuals who want a straightforward policy that is easy to understand and quick to set up. Its fixed-term options and simple structure make it easier to compare and purchase without needing extensive knowledge of insurance products.
Does Manulife’s Vitality program make a real difference compared to BMO?
Manulife’s Vitality program is a unique feature that differentiates it from BMO. The program rewards policyholders for healthy behaviours such as regular exercise, health check-ups, and wellness activities, offering incentives like gift cards or discounts.
For individuals who are motivated to actively participate, this can add tangible value and even offset some of the cost of insurance over time. However, if you are unlikely to engage with the program consistently, its benefits may be minimal. BMO does not offer a comparable feature, focusing instead on keeping its policies simple and straightforward. Therefore, Vitality is best viewed as an added bonus rather than a core deciding factor.
Manulife and BMO both offer term life insurance, but their product structures differ fundamentally. Manulife focuses on flexibility with customizable term options, multi-life policies, and wellness integration. BMO, in contrast, offers straightforward, fixed-term coverage (10–30 years) designed for simplicity and ease of understanding.
