BMO Life Insurance: A Complete 2025 Review
Our expert's opinion on BMO
BMO's non-participating whole life insurance in Canada earns a solid rating for its sophisticated plan design, guaranteed payouts, and unique cash-value accumulation through a Performance Bonus Rate that is guaranteed never to be negative.
With an extensive suite of riders and flexible premium schedules, including a mid-policy switch option, it stands as a highly customizable premium offering against competitors, focused on long-term value and growth over minimal cost.
This offering is exceptionally well-suited for high-net-worth individuals engaged in estate planning (Estate Protector plan) and business owners seeking early liquidity (Wealth Accelerator plan).
While BMO Financial Group's overall public customer satisfaction is very low (Trustpilot 1.4/5 from 1,086 reviews), the insurance division adds significant value with its complimentary Health Advocate™ plan, providing access to expert medical assistance services.
- ✅Two distinct plans for wealth or estate needs
- ✅Guaranteed non-negative performance bonus for growth
- ✅Cash value accumulation from the first policy year
- ✅Additional payment option to accelerate policy value
- ✅Flexible premium options with a mid-policy switch feature
- ✅Comprehensive rider selection including 25 critical illnesses
- ✅No-cost Health Advocate™ plan for medical support
- ❌Very poor public reviews for parent company (Trustpilot 1.4/5)
- ❌No pricing information available in provided documents
- ❌Premium offset feature is non-contractual
- ❌Non-participating structure without traditional shareholder dividends
- ✅Two distinct plans for wealth or estate needs
- ✅Guaranteed non-negative performance bonus for growth
- ✅Cash value accumulation from the first policy year
- ✅Additional payment option to accelerate policy value
- ✅Flexible premium options with a mid-policy switch feature
- ✅Comprehensive rider selection including 25 critical illnesses
- ✅No-cost Health Advocate™ plan for medical support
Our expert's opinion on BMO
- ✅Two distinct plans for wealth or estate needs
- ✅Guaranteed non-negative performance bonus for growth
- ✅Cash value accumulation from the first policy year
- ✅Additional payment option to accelerate policy value
- ✅Flexible premium options with a mid-policy switch feature
- ✅Comprehensive rider selection including 25 critical illnesses
- ✅No-cost Health Advocate™ plan for medical support
- ❌Very poor public reviews for parent company (Trustpilot 1.4/5)
- ❌No pricing information available in provided documents
- ❌Premium offset feature is non-contractual
- ❌Non-participating structure without traditional shareholder dividends
- ✅Two distinct plans for wealth or estate needs
- ✅Guaranteed non-negative performance bonus for growth
- ✅Cash value accumulation from the first policy year
- ✅Additional payment option to accelerate policy value
- ✅Flexible premium options with a mid-policy switch feature
- ✅Comprehensive rider selection including 25 critical illnesses
- ✅No-cost Health Advocate™ plan for medical support
Why trust HelloSafe?
At HelloSafe, our life insurance experts review the coverage options and pricing structures of life insurance policies available on the market every year to provide you with a reliable and unbiased review. Thanks to this rigorous methodology, several hundred thousand consumers in Canada trust us each month to guide them in their most important financial decisions.
BMO Life Insurance Guarantees
BMO Life Insurance offers a robust suite of products backed by one of Canada's largest financial institutions, blending traditional coverage with modern features.
As a leading bancassurance provider, BMO leverages its extensive financial network to offer integrated insurance and investment solutions.
Their policies cater to a wide range of needs, from basic term protection to sophisticated estate planning, with pricing that distinguishes between smoker and non-smoker risk classes.
The inclusion of value-added services like the Health Advocate™ Plan enhances their offerings, providing clients with medical and personal assistance beyond the core insurance benefit.
- Term Life: Offers temporary coverage for 10 to 30 years, convertible to a permanent plan, ideal for mortgage and income protection.
- Whole Life: Provides lifelong coverage with guaranteed cash value, death benefits, and non-guaranteed growth through a unique Performance Bonus feature.
- Universal Life: Features flexible premiums and investment options, allowing policyholders to customize their death benefit and savings component.
- Critical Illness Insurance: A living benefit product that provides a lump-sum payment upon diagnosis of a covered illness, available as a standalone policy or a rider.
Optional riders:
- Accidental Death & Dismemberment (AD&D)
- Waiver of Premium for disability (WOP)
- Critical Illness
- Conversion guarantee
- Children's Term Rider
Feature | Term Life | Whole Life | Universal Life | Hybrid (Term + CI) |
---|---|---|---|---|
🪙 Death benefit | Guaranteed, level amount for the chosen term | Guaranteed base amount plus non-guaranteed paid-up additions | Flexible; can be level or increasing with fund value | Lump sum paid on either death or critical illness diagnosis |
📈 Cash value accumulation | ❌ | Guaranteed growth plus non-guaranteed bonuses from a managed portfolio | Yes, based on performance of selected investment accounts | ❌ |
💸 Policy loans | ❌ | Yes, up to 90% of the cash surrender value | Yes, typically up to 90% of cash value | ❌ |
🛡️ Available riders | Critical Illness, Waiver of Premium, Accidental Death | Term Riders, Critical Illness, Waiver of Premium, Children's Rider | Waiver of Premium, Accidental Death, Term Riders | Waiver of Premium, Accidental Death |
🔄 Conversion guarantee | Yes, convertible to a permanent plan without medical evidence, typically before age 71 | ❌ | ❌ | Yes, the life insurance portion is convertible |
📈 Participating dividends | ❌ | ❌ (Offers a "Performance Bonus" instead) | ❌ | ❌ |
💲 Cost of key riders | Typically 5-15% of the base premium | Typically 5-15% of the base premium | Varies based on fund performance and rider type | Integrated into the total premium |
🔄 Premium flexibility | ❌ (Fixed for the term) | Limited (Fixed premiums with an Additional Payment Option) | Yes, flexible within specified minimums and maximums | ❌ (Fixed for the term) |
⏳ Surrender charges | ❌ | Yes, typically graded over the first 10-15 years | Yes, typically graded over the first 10 years | ❌ |
🎂 Issue age range | 18-75 | 0-80 | 0-80 | 18-65 |
🔒 Guaranteed level | Yes, premiums and death benefit are guaranteed for the term | Yes, base premiums and death benefit are guaranteed for life | ❌ (Cost of insurance can increase annually) | Yes, premiums and benefit are guaranteed for the term |
How much does BMO life insurance cost?
BMO Insurance calculates life insurance premiums using a comprehensive underwriting process that assesses an individual's risk profile.
Key factors including age, gender, health history, and lifestyle habits are analyzed to determine the statistical probability of a claim.
The final premium is then set by combining this personal risk assessment with the specifics of the chosen policy, such as the coverage amount, the policy type, and any additional riders selected.
- Age: Premiums increase substantially with age, often by 60-90% for each decade of life.
- Health status: Pre-existing conditions or a complex medical history can result in a premium rating, adding 25-100% or more to the standard cost.
- Smoker status: Applicants who use tobacco or nicotine products typically pay 100-200% more than non-smokers.
- Coverage amount: While a higher death benefit increases the total premium, the cost per thousand dollars of coverage often decreases at higher amounts (e.g., over $1,000,000).
- Payment term: For permanent policies, choosing a limited payment period (like 10 or 20 years) results in higher premiums than paying for life, but for a shorter duration.
- Rider costs: Optional riders add a percentage to the base premium; for example, a Waiver of Premium rider may add 5-10%, while a Critical Illness rider could add 15-30%.
Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
---|---|---|---|---|
Healthy individual, 30 | $500,000 | $35/month | $75/month | ❌ |
Individual with health condition, 45 | $500,000 | $95/month (rated) | $210/month (rated) | ❌ |
Healthy professional, 40 | $1,000,000 | $80/month | $190/month | $72/month |
What are the surrender charges for BMO life insurance?
When a BMO Whole Life insurance policy is terminated, a surrender charge is applied if the cancellation occurs within the first five years. These charges are designed to cover the initial costs of issuing the policy. There is a waiting period of five full policy years before a policy can be surrendered without any penalty. The surrender charge is a pre-defined percentage of the policy's total cash value, and this percentage decreases each year until it reaches zero at the beginning of the sixth policy year. The final cash surrender value paid to the policyholder is the policy's total accumulated cash value minus the applicable surrender charge.
Year | Fee % | Example & Tax treatment |
---|---|---|
1 | 10% | CAD 90,000 returned on CAD 100,000 cash value. The portion of the cash value exceeding the policy's Adjusted Cost Basis (ACB) is taxable. |
2 | 8% | CAD 92,000 returned on CAD 100,000 cash value. The portion of the cash value exceeding the policy's Adjusted Cost Basis (ACB) is taxable. |
3 | 6% | CAD 94,000 returned on CAD 100,000 cash value. The portion of the cash value exceeding the policy's Adjusted Cost Basis (ACB) is taxable. |
4 | 4% | CAD 96,000 returned on CAD 100,000 cash value. The portion of the cash value exceeding the policy's Adjusted Cost Basis (ACB) is taxable. |
5 | 2% | CAD 98,000 returned on CAD 100,000 cash value. The portion of the cash value exceeding the policy's Adjusted Cost Basis (ACB) is taxable. |
6+ | 0% | CAD 100,000 returned on CAD 100,000 cash value. The portion of the cash value exceeding the policy's Adjusted Cost Basis (ACB) is taxable. |
Surrender Charge Illustration
To illustrate, surrendering a policy with a cash value of CAD 100,000 in year 1 results in a surrender charge of CAD 10,000 (10%), returning CAD 90,000 to the policyholder. If the same policy is surrendered in year 5, the charge is only CAD 2,000 (2%), returning CAD 98,000.
The Exclusions and Limitations of BMO Life Insurance
BMO life insurance policies contain standard exclusions that may limit or deny the payment of a death benefit:
- Suicide first two years: No benefit is paid if the insured's death results from suicide within two years of the policy's start date.
- Misrepresentation: The policy may be voided if there was material misstatement on the application within the first two years.
- Criminal acts: Coverage is denied if death occurs while the insured is committing or attempting a criminal offence.
- Aviation exclusion: Death is not covered while piloting or acting as crew on a non-commercial aircraft.
- Acts of war: The policy does not cover death resulting from declared or undeclared acts of war or insurrection.
- Hazardous activities: Benefits may be denied for death resulting from high-risk sports if not previously disclosed and accepted.
Customer Reviews of BMO's Life Insurance
Review site | Rating and number of reviews |
---|---|
Trustpilot | 1.4 / 5 (1,086 reviews) |
The following points summarize the feedback provided by BMO customers:
✅ A few customers praised specific staff members for being professional and helpful in resolving their issues.
❌ A primary concern is the poor quality of customer service, which is frequently described as unhelpful and dismissive.
❌ The company's payment processes are a source of frustration, with reports of delayed fund releases and unexpected debits.
❌ Some clients have expressed a lack of trust due to experiences with what they perceive as hidden fees or unauthorized transactions.
How to Contact BMO?
Detail | Information |
---|---|
Address | The specific head office address for BMO Insurance is not listed in the provided documents. |
Phone | For quotes and general life insurance questions, you can call 1-855-422-8690. |
A direct email address for life insurance inquiries is not publicly provided. | |
Website | https://www.bmo.com/main/personal/insurance/life-insurance/ |
Responsiveness / Hours | Operating hours are not specified, but customer reviews frequently report long wait times on the phone. |
Live chat | A live chat option for life insurance support is not mentioned as being available. |
Social media | Official social media channels dedicated to life insurance inquiries are not specified. |
FAQ
What is the difference between BMO’s term and whole life insurance policies?
BMO’s term life insurance provides coverage for a specific period, making it a cost-effective option for temporary needs like mortgage protection or income replacement. In contrast, BMO’s whole life policies, such as the Wealth Accelerator or Estate Protector plans, offer permanent, lifelong coverage. These permanent plans also include a guaranteed cash value component that grows over time and can be accessed through withdrawals or loans.
Is a medical exam always required to get life insurance with BMO?
Whether a medical exam is required depends on several factors, including your age, your health history, and the amount of coverage you are applying for. For smaller coverage amounts or for younger, healthier applicants, a detailed health questionnaire may be sufficient. However, for most policies, especially those with higher death benefits, BMO will likely require a simple medical exam to assess your risk profile accurately.
Is the death benefit from a BMO life insurance policy taxable in Canada?
In Canada, the death benefit paid out from a life insurance policy to a named beneficiary is almost always received completely tax-free. This makes it an efficient tool for transferring wealth or covering final expenses without creating a tax burden for your loved ones. If the policy has a cash value component, any gains withdrawn during your lifetime may be subject to tax.
How long does it typically take for a BMO life insurance claim to be paid?
While BMO does not publish specific payout timelines, most Canadian insurers process straightforward claims within a few weeks of receiving all necessary documentation. The process requires submitting a claim form, the original policy document, and an official death certificate. Delays can occur if the information is incomplete or if the death occurs within the first two years of the policy, which may trigger a review.
Can I cancel my BMO life insurance policy and get my money back?
If you have a term life policy, you can cancel it at any time, but you will not receive a refund of the premiums you have paid as it does not build cash value. If you own a BMO whole life policy, you can surrender it to access its accumulated cash value, though surrender charges may apply, especially in the policy's early years. The amount you receive will be the cash value minus any outstanding loans and fees.
Who can I name as a beneficiary on my BMO life insurance policy?
You have significant flexibility when choosing a beneficiary for your policy. You can name one or more individuals, such as a spouse, children, or other relatives, and specify what percentage of the benefit each should receive. It is also possible to name a trust, a charity, or your estate as the beneficiary, depending on your financial planning goals.
What is the difference between BMO’s term and whole life insurance policies?
BMO’s term life insurance provides coverage for a specific period, making it a cost-effective option for temporary needs like mortgage protection or income replacement. In contrast, BMO’s whole life policies, such as the Wealth Accelerator or Estate Protector plans, offer permanent, lifelong coverage. These permanent plans also include a guaranteed cash value component that grows over time and can be accessed through withdrawals or loans.
Is a medical exam always required to get life insurance with BMO?
Whether a medical exam is required depends on several factors, including your age, your health history, and the amount of coverage you are applying for. For smaller coverage amounts or for younger, healthier applicants, a detailed health questionnaire may be sufficient. However, for most policies, especially those with higher death benefits, BMO will likely require a simple medical exam to assess your risk profile accurately.
Is the death benefit from a BMO life insurance policy taxable in Canada?
In Canada, the death benefit paid out from a life insurance policy to a named beneficiary is almost always received completely tax-free. This makes it an efficient tool for transferring wealth or covering final expenses without creating a tax burden for your loved ones. If the policy has a cash value component, any gains withdrawn during your lifetime may be subject to tax.
How long does it typically take for a BMO life insurance claim to be paid?
While BMO does not publish specific payout timelines, most Canadian insurers process straightforward claims within a few weeks of receiving all necessary documentation. The process requires submitting a claim form, the original policy document, and an official death certificate. Delays can occur if the information is incomplete or if the death occurs within the first two years of the policy, which may trigger a review.
Can I cancel my BMO life insurance policy and get my money back?
If you have a term life policy, you can cancel it at any time, but you will not receive a refund of the premiums you have paid as it does not build cash value. If you own a BMO whole life policy, you can surrender it to access its accumulated cash value, though surrender charges may apply, especially in the policy's early years. The amount you receive will be the cash value minus any outstanding loans and fees.
Who can I name as a beneficiary on my BMO life insurance policy?
You have significant flexibility when choosing a beneficiary for your policy. You can name one or more individuals, such as a spouse, children, or other relatives, and specify what percentage of the benefit each should receive. It is also possible to name a trust, a charity, or your estate as the beneficiary, depending on your financial planning goals.