Is BMO Disability Insurance Right for You? Review 2024

What if an illness or injury prevented you from working? BMO Disability Insurance might be your financial lifesaver. Among the many options to consider in the market is BMO disability insurance. But is it right for you? Read on!

In this review, we take you through everything you need to know about BMO disability insurance, the coverage it offers, eligibility, costs, and more. Then use our free comparator to compare the best disability insurance plans in Canada and get free personalized quotes in no time right here on this page.

Our 2024 review of BMO disability insurance

BMO disability insurance provides you with financial protection if you become unable to work due to an illness or injury.

There are two main types of disability insurance offered by BMO: Mortgage Disability Insurance and Loans and Line of Credit Protection Insurance.

Here are its pros and cons:

Pros:

• Two types of coverage, catering to different needs
• Flexible coverage options
• A well-known and reputable financial institution

Cons:

• Premiums not readily available
• The minimum age and work hour requirements might not be suitable for everyone
• The policy may not cover some pre-existing conditions

If BMO disability insurance doesn't meet your requirements, know that there are many other options out there. Explore them and choose the one that best meets your expectations. You can use our free comparator below to get personalized disability insurance quotes in just minutes.

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What is BMO Mortgage Disability Insurance?

BMO’s Mortgage Disability Insurance offers protection for your family by covering your monthly mortgage payment in the event of illness or injury that renders you unable to work or perform your regular job duties.

Here are its key offerings:

• This insurance covers your mortgage payment, with the coverage percentage chosen by you, up to a maximum of $3,000 per month per insured individual.
• This coverage encompasses principal, interest, and, if applicable, property tax deposits and mortgage life insurance premiums.
• You have the flexibility to select either 50% or 100% coverage of your monthly payment.

Here’s some additional information that might help you make a better decision:

1. Up to two eligible individuals per mortgage can be covered, each choosing either 50% or 100% coverage. 
2. In the event of simultaneous disability for both individuals, benefits would amount to the standard monthly mortgage payment, capped at $6,000 per month.
3. The commencement of Mortgage Disability Insurance benefits occurs after a continuous disability period of 30 days.

What is the cost of BMO Mortgage Disability Insurance?

Premiums for BMO’s Mortgage Disability Insurance are determined based on your monthly payment, selected coverage percentage, and your age at the time of application. For joint coverage, the cost for each person is calculated independently. Importantly, premiums remain constant throughout the life of your mortgage, unaffected by age or changes in health.

Here is the average monthly premium for BMO Mortgage Disability Insurance in Canada (Cost per $100 of coverage per month):

• $1.42 for people aged 19-29
• $1.87 for people aged 30-35
• $2.40 for people aged 36-40
• $3.00 for people aged 41-45

Disability insurance quotes differ from provider to provider as well, so it's essential to compare the plans. Make sure to use our comparator tool to explore the best plans from TD disability insurance, Blue Cross disability insurance, and more.

What is the eligibility criteria?

Borrowers, spouses, or guarantors can qualify for Mortgage Disability Insurance if they are 18 years or older but under 65, Canadian residents and provide satisfactory responses to two simple health questions. 

To be eligible, you must be actively employed, meaning you work a minimum of 25 hours per week and can perform the regular tasks of your job.

Also, if you are a seasonal worker who is not actively working at the time of application, you must still be capable of performing your usual duties.

What is BMO Loans and Line of Credit Protection Insurance?

BMO's Loans and Line of Credit Protection Insurance in Canada is a type of creditor insurance designed to help you make your monthly loan or line of credit payments if you become disabled and are unable to work. 

• It covers your monthly loan or line of credit payments for up to 24 months if you become disabled.
• It allows you to choose the amount of coverage you need, based on your financial situation and loan/line of credit balance.

To be eligible for this insurance, you must meet the following criteria:

• Age: 18-65
• Canadian resident
• Actively employed with at least 25 hours per week

There’s more. You get a lot of coverage options:

Loan Type	Covered Balance
Revolving lines of credit	Outstanding balance
Installment loans	Remaining loan payments
Personal Loan Plan	Both loan and line of credit balances
RRSP ReadiLine®	Outstanding balance
Small Business Loan	Outstanding balance

What is the cost of BMO Loans and Line of Credit Protection Insurance?

The cost of BMO's Loans and Line of Credit Protection Insurance in Canada will depend on several factors, including:

• Your age: Premiums typically increase with age.
• Your health: If you have any pre-existing health conditions, your premiums may be higher.
• The amount of coverage you choose: You can choose different coverage options depending on your needs.
• The length of the benefit period: Benefits are paid for up to 24 months per disability. The longer the benefit period, the higher your premium will be.
• The type of loan or line of credit: Premiums may vary depending on the type of loan or line of credit you have.

Here’s a general idea of what you might expect to pay (per $100 of coverage per month):

• $0.97 for people aged 19-29
• $1.27 for people aged 30-35
• $1.68 for people aged 36-40
• $2.09 for people aged 41-45

These are just rough estimates and the real cost will vary based on factors such as your age, coverage, and current health condition among others. Use our free comparator below to get personalized disability insurance quotes from leading Canadian companies.

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How to claim for BMO's Line of Credit insurance?

Here are the steps to follow if you need to claim BMO's Loan/Line of Credit Disability Insurance in Canada:

1. Download the form online or obtain it from your BMO branch.
2. Fill out the form and attach the necessary documents. This could include medical reports, doctor's notes, or a completed Disability Statement form.
3. Submit your claim form and supporting documents online, by mail, or in person at a BMO branch.
4. BMO will review your claim and determine if you are eligible for benefits. The company may request additional information or medical documentation.
5. You can expect a decision within 30 days of submitting your claim.

If your claim is approved, BMO will start making payments on your loan/line of credit. The amount of the benefit will depend on your coverage and the type of loan/line of credit you have.

Is BMO disability insurance right for you?

Whether BMO Disability Insurance is right for you depends on your circumstances and needs. Here are some factors to consider:

Here are some questions to ask yourself to help you decide if BMO Disability Insurance is right for you:

• Do I have a stable income?
• Do I have dependents who rely on me financially?
• Do I have any existing health conditions?
• What are my current financial obligations?
• What is my budget for disability insurance?

Consider seeking professional financial advice to ensure that BMO Disability Insurance aligns with your overall financial plan. Also, compare plans from different vendors to get the best deal and best value for your money. You can use our comparison tool for free and instant quotes.