News Releases
TORONTO, Oct. 10, 2019 /CNW/ - BMO Insurance today announced the launch of the North American Equity Enhanced Market Indexed Account (EMIA), a new investment option available exclusively on its universal life insurance policies.
"People in Canada want more certainty when it comes to their life insurance policies," said Steven Cooney, Senior Vice President, Head of Individual Life and Annuities, BMO Insurance. "This has become even more important given recent market volatility."
The returns credited on the investment component of universal life insurance policies are important to meeting financial objectives. In today's low interest rate environment, some policy holders want higher returns than are available with guaranteed interest options, yet may not want the risks associated with equity-linked accounts. For these individuals, BMO Insurance created the EMIA.
"The BMO Insurance EMIA is an ideal investment option for those wanting the upside potential of equity-linked returns without the risk of negative returns," said Cooney.
The investment strategy backing up the EMIA is managed by BMO Insurance in partnership with BMO Capital Markets. Using a combination of long term bonds and enhanced equity investments, they can mitigate investment risk during market downturns. The credited rate is indexed to the S&P/TSX Composite Low Volatility Index (TXLV) and S&P500 Low Volatility Index (SP5LVI), giving policy owners exposure to returns linked to both the Canadian and U.S. markets. BMO Insurance applies a smoothing formula to provide its policy owners with a more stable credited rate on their universal life insurance policies.
For more information on the Enhanced Market Indexed Account and other BMO Insurance products, please visit: bmoinsurance.com/advisor.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $839 billion as of July 31, 2019, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group
