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BMO Insurance Grows Presence in the Whole Life Market with New Plan
  • Launches BMO Insurance Whole Life Plan
  • Features include: Performance Bonus with Paid-Up Additions and Premium  Switch Option
  • Leverages the investment expertise of BMO Capital Markets and BMO Global Asset Management

TORONTO, May 25, 2017 – BMO Insurance today announced its first major push into the whole life market with the new BMO Insurance Whole Life Plan.

The BMO Insurance Whole Life Plan is a non-participating whole life insurance plan designed to offer an increasing death benefit with guaranteed cash values and guaranteed level premiums payable for 10 or 20 years or to age 100, after which time the policy becomes fully paid.

“In today’s market, client expectations are constantly evolving,” said Peter McCarthy, President and CEO, BMO Insurance. “We are committed to meeting the diverse needs of Canadians with a straightforward plan, including a unique investment strategy designed to deliver more predictable growth in the death benefit and cash values of their policies.”

BMO Insurance Whole Life Plan features:

Performance Bonus and Paid-Up Additions: A Performance Bonus is calculated annually and is used automatically to add “paid-up” insurance coverage (or a “Paid-Up Addition”) which increases the total death benefit and cash value available on the policy.

Using a combination of fixed income investment and enhanced equity investments, BMO Insurance has collaborated with the investment expertise of BMO Capital Markets and BMO Global Asset Management to help manage the company’s portfolio of general assets used in the calculation of the Performance Bonus.

BMO Insurance also guarantees that the minimum Performance Bonus Rate will be at least 5.5 per cent until April 30, 2020. The Performance Bonus is also guaranteed never to be negative for as long as clients keep their policies.

The Performance Bonus is simple and transparent to clients, as it is calculated by multiplying the Performance Bonus Rate by the guaranteed cash value of the basic coverage.

Premium Switch Option: Clients have the flexibility to change their premium payments to a lower-cost schedule (from a “10 Pay” option to a “20 Pay” option) based on affordability years after buying the policy. This helps clients manage the annual cost of the policy, without affecting the amount of their basic coverage.

Reduced Paid-Up Insurance Option: If clients want to stop paying premiums completely, they can elect to reduce their basic coverage to a schedule of guaranteed amounts.

Advisors can illustrate each of these features to clients up front using Wave (version 34.0) software.

“This plan provides a competitive alternative to participating whole life plans. It’s simple, transparent and flexible with built-in guarantees, designed for Canadians who are looking for permanent life insurance protection that is adaptable to their changing needs,” said Mr. McCarthy.

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About BMO Financial Group

Established in 1817, and currently marking its 200th year of operations, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of $719 billion as of April 30, 2017, and more than 45,000 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, Wealth Management and BMO Capital Markets.


Media contacts:
Mark Beazley, Toronto,, 416-867-3996
Valérie Doucet, Montreal,, 514-877-8224

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