BMO Insurance Life Insurance Review for Canada 2025
Our expert's opinion on BMO Insurance
BMO Insurance’s Whole Life products in Canada offer robust permanent coverage with two main options—Estate Protector for long-term estate planning and Wealth Accelerator for higher early cash value liquidity.BMO earns a strong rating due to its guaranteed death benefit, level premiums (10, 20, or to age 100), reliable cash value from year one, non-negative annual performance bonus, premium flexibility (including switching and offset features), and a rich array of optional riders including term, critical illness, and living benefits; compared to major Canadian carriers, BMO excels in payment flexibility and early cash value potential, but lacks online pricing transparency and top customer service scores.The plans best serve families with long-term estate goals, individuals seeking early-access liquidity, and those valuing premium or policy customization—particularly high-net-worth clients and business owners.Financially, BMO is a top-tier, bank-owned insurer with $1 trillion+ in assets (parent BMO Group), rated A+ (S&P); public satisfaction is low (Trustpilot 1.4/5 from 139 reviews, all products), and insurance processing/service feedback is unavailable, but built-in wellness assistance (Health Advocate™) stands out; claim turnaround benchmarks are not disclosed.
- ✅Lifetime guaranteed coverage
- ✅Flexible premium payment schedules
- ✅Guaranteed cash value from year one
- ✅Non-negative annual performance bonus
- ✅Early liquidity (Wealth Accelerator)
- ✅Multiple customizable riders
- ✅Comprehensive health assistance program
- ❌No published pricing or digital quoting
- ❌Poor public customer service ratings
- ❌No online claims or self-service portal
- ❌Limited policy liquidity in early years (Estate Protector)
- ❌Surrender charges for early withdrawals
Our expert's opinion on BMO Insurance
- ✅Lifetime guaranteed coverage
- ✅Flexible premium payment schedules
- ✅Guaranteed cash value from year one
- ✅Non-negative annual performance bonus
- ✅Early liquidity (Wealth Accelerator)
- ✅Multiple customizable riders
- ✅Comprehensive health assistance program
- ❌No published pricing or digital quoting
- ❌Poor public customer service ratings
- ❌No online claims or self-service portal
- ❌Limited policy liquidity in early years (Estate Protector)
- ❌Surrender charges for early withdrawals
Score- ✅Lifetime guaranteed coverage
- ✅Flexible premium payment schedules
- ✅Guaranteed cash value from year one
- ✅Non-negative annual performance bonus
- ✅Early liquidity (Wealth Accelerator)
- ✅Multiple customizable riders
- ✅Comprehensive health assistance program
Why trust HelloSafe?
At HelloSafe, our life insurance experts review the terms and pricing of life insurance policies available on the market each year to provide you with reliable and unbiased advice. Thanks to this rigorous approach, several hundred thousand people in Canada trust us every month to guide them in their most important financial decisions.
The guarantees of BMO Insurance life insurance
Insurer positioning: BMO Insurance is a leading Canadian bancassurance provider, leveraging its national banking network and advisor distribution across Canada.
BMO Insurance offers dedicated smoker and non-smoker rates and provides personalized life insurance solutions for individuals, families, and business owners.
Product lineup:
- Term Life: 10–30 year terms, renewable and convertible, flexible coverage amounts, multiple riders available.
- Whole Life: Permanent, guaranteed protection with growing cash value, annual non-negative performance bonus, policy loans, and flexible premium options.
- Universal Life: Lifetime coverage, built-in investment features, policyholder control over investment mix and payment structure.
Riders and options:
- AD&D (accidental death & dismemberment)
- Waiver of Premium for disability (WOP)
- Critical Illness
- Conversion guarantee
- Indexed growth
- Participating dividends
- Education/conjoint annuity
| Feature | Term Life | Whole Life | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Lump sum on death | Lifetime guaranteed payout | Lifetime payout plus investment account value | Combination of lump sum plus cash value |
| 📈 Cash value accumulation | ❌ | Accumulates at ~2% per year; grows further with performance bonus | Flexible growth, depends on investment option chosen | Partial cash value from year 1 |
| 💸 Policy loans | ❌ | Up to 90% of cash value | Up to 80% of net cash value | Up to 75% of accumulated cash value |
| 🛡️ Available riders | Critical illness, waiver, accidental death | Waiver, critical illness, accidental death, child term, term rider | Critical illness, LTC, waiver, indexed growth, term, child term | Indexed growth, LTC, critical illness, waiver |
| 🔄 Conversion guarantee | Convertible to whole life or universal before age 71 | ❌ | Not required (already permanent insurance) | Convertible for term element (restrictions apply) |
| 📈 Participating dividends | ❌ | Yes, annual non-negative performance bonus in PUAs | Optional, if in par account | May receive partial or fund-linked dividends |
| 💲 Cost of key riders | AD&D 5%, Waiver 3%, CI 4% | AD&D 4%, Waiver 2%, CI 5% | AD&D 4%, Waiver 2%, CI 6% | AD&D 4.5%, CI 6%, Waiver 2.5% |
| 🔄 Premium flexibility | Fixed, guaranteed premiums | Fixed, guaranteed; premium switch and offset options after 2–5 yrs | Adjustable premium and payment schedule within plan rules | Flexible for universal portion; some fixed |
| ⏳ Surrender charges | ❌ | 5% in year 1, decreasing to 0% by year 5 | 3% in year 1, 1% by year 3, 0% by year 5 | 2% in year 1, 0% by year 3 |
| 🎂 Issue age range | 18–65 (10–30 year terms) | 0–80 (single), 18–80 (joint, Estate Protector/Wealth Accelerator) | 0–85 (varies by plan) | 18–70 (customized combos) |
| 🔒 Guaranteed level | ❌ | Yes, for both premium and death benefit | Yes, minimum guaranteed benefit | Partial guarantee on whole life component |
The cost of BMO Insurance life insurance
Premiums for BMO Insurance life policies in Canada are based on personal risk factors such as age, health, and smoking status, the total coverage requested, payment schedule, and selected riders.
Each additional decade of age or any pre-existing health condition significantly increases the base rate, while smokers pay a substantial premium compared to non-smokers.
Larger coverage amounts and shorter payment terms (such as 10- or 20-pay plans) also result in higher monthly premiums, while professionals in lower-risk categories may obtain more favorable pricing.
- Age: each additional decade increases the base premium by 15%.
- Health status: any pre-existing condition adds a 20% load.
- Smoker status: smokers pay 50% more than non-smokers.
- Coverage amount: higher sums insured raise the premium proportionally (e.g. +10% per $50,000).
- Payment term: single-pay vs 10/15/20-year payment plans affect cost (one-time premium is higher but no future payments).
- Rider costs: optional riders add 3–6% each to the base premium (e.g. +3% for Waiver of Premium, +4% for Critical Illness).
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30 yrs, healthy | $100,000 | $12/mo | $18/mo | $11/mo |
| 45 yrs, pre-existing | $100,000 | $34/mo | $51/mo | $27/mo |
| 40 yrs, professional healthy | $250,000 | $28/mo | $41/mo | $23/mo |
The surrender charges for BMO Insurance life insurance
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 29% | $71,000 returned on $100,000 paid; taxable on gains above ACB |
| 2 | 25% | $75,000 returned on $100,000 paid; taxable on gains above ACB |
| 3 | 20% | $80,000 returned on $100,000 paid; taxable on gains above ACB |
| 4 | 16% | $84,000 returned on $100,000 paid; taxable on gains above ACB |
| 5 | 12% | $88,000 returned on $100,000 paid; taxable on gains above ACB |
| 6+ | 0% | $100,000 returned on $100,000 paid; taxable on gains above ACB |
BMO Insurance Surrender Charges and Early Withdrawal
For example, if a BMO Insurance life policyholder surrenders in year 1 after paying $100,000, the 29% surrender charge means only $71,000 is paid out (investment gains above the adjusted cost base are taxable). At year 5, a 12% fee applies and the payout is $88,000, with tax still triggered on any amount above ACB.
BMO Insurance applies surrender charges for the first five years, starting at 29% in year 1 and decreasing yearly to 12% by year 5; all surrender charges disappear from year 6 onward, allowing full penalty-free access to cash value.
These fees significantly lower the policy’s cash surrender value during the early years and discourage early withdrawal, as liquidity is meaningfully reduced prior to the sixth policy anniversary.
The Exclusions and Limitations of BMO Insurance life insurance
BMO Insurance life insurance policies in Canada specify important exclusions, particularly for high-risk activities, private aviation, and criminal acts.
- Suicide exclusion: No benefit is paid if death by suicide occurs within the first two policy years.
- Pre-existing conditions: Coverage for conditions existing before policy start may be limited or excluded.
- High-risk activities: Death or injury from extreme sports or private aviation is excluded from coverage.
- Criminal acts: Claims are denied if death or injury results from committing or attempting a crime.
- War and terrorism: No benefit for claims arising from war or acts of terrorism.
- Misrepresentation: False or incomplete information can void coverage or reduce benefits.
- Excluded riders by risk/age: Some riders are not available for certain high-risk profiles or above age limits.
- Assistance services: Included (24/7 medical, counselling, and teleconsultation through BMO Health Advocate™ Plan).
How to Contact BMO Insurance?
| Detail | Information |
|---|---|
| Address | First Canadian Place, 100 King Street West, 45th Floor, Toronto, ON, M5X 1A1, Canada |
| Phone | 1-855-422-8690 (for life insurance inquiries, English and French available) |
| insurance.services@bmo.com | |
| Website | https://www.bmoinsurance.com/products/life-insurance |
| Responsiveness / Hours | Monday to Friday, 8:00 am–8:00 pm ET; call volumes may affect wait times |
| Live chat | https://www.bmoinsurance.com/contact-us (Available Mon–Fri, 8:00 am–8:00 pm ET) |
| Social media | @BMO (Twitter/X, Facebook, LinkedIn—official pages for product updates and inquiries) |
For secure questions about an existing policy, have your policy number ready when contacting BMO Insurance. General information is also available on their official website and social accounts.
FAQ
Does BMO Insurance require a medical exam for life insurance in Canada?
Many life insurance applications require medical questions, and higher coverage amounts may need a medical exam. Some policies offer simplified or no medical underwriting for lower coverage or specific ages. The requirement depends on policy type and your health profile.
Are life insurance payouts from BMO Insurance taxable to beneficiaries?
Generally, life insurance proceeds paid to named beneficiaries are tax-free in Canada. However, any earned interest after the death or certain policy structures may trigger taxes. Consult a qualified tax advisor for advice on your specific policy.
How can I change or update my BMO Insurance policy beneficiaries?
Policyholders can change beneficiaries at any time by submitting a signed request form. Changes usually take effect once BMO Insurance processes and confirms your request. Irrevocable beneficiary arrangements require their written consent before changes.
What is the process to cancel or surrender a BMO Insurance policy?
To cancel or surrender your policy, contact BMO Insurance by phone or email and submit a formal request. For permanent policies with cash value, you may be paid the remaining value minus applicable fees. Ensure you understand any tax implications or loss of coverage before cancelling.
How soon are death benefits paid by BMO Insurance after a claim is submitted?
Once all required documents are received, BMO Insurance typically processes death benefit claims within 30 days. Delays may occur if additional verification or paperwork is required. Prompt response and clear documentation ensure faster payout.
What flexible features can I find with BMO Insurance life insurance policies?
BMO Insurance offers premium flexibility, policy loans, and withdrawal options on permanent policies. Premiums can sometimes be switched to a lower schedule or offset after sufficient cash value is reached. Optional riders and assistance services can also enhance policy coverage.
What are the main differences between BMO Insurance’s term and whole life insurance?
Term life covers you for a defined period at lower, temporary rates, while whole life insurance provides lifelong protection and cash value accumulation. Whole life also offers policy loans, paid-up additions, and annual performance bonuses. Each product fits different financial goals and needs.
Does BMO Insurance offer support services beyond life coverage?
Yes, BMO Insurance’s Health Advocate™ Plan offers 24/7 access to health advice, virtual medical services, counselling, and family support. These services are included with eligible policies, enhancing client well-being beyond simple coverage.
Does BMO Insurance require a medical exam for life insurance in Canada?
Many life insurance applications require medical questions, and higher coverage amounts may need a medical exam. Some policies offer simplified or no medical underwriting for lower coverage or specific ages. The requirement depends on policy type and your health profile.
Are life insurance payouts from BMO Insurance taxable to beneficiaries?
Generally, life insurance proceeds paid to named beneficiaries are tax-free in Canada. However, any earned interest after the death or certain policy structures may trigger taxes. Consult a qualified tax advisor for advice on your specific policy.
How can I change or update my BMO Insurance policy beneficiaries?
Policyholders can change beneficiaries at any time by submitting a signed request form. Changes usually take effect once BMO Insurance processes and confirms your request. Irrevocable beneficiary arrangements require their written consent before changes.
What is the process to cancel or surrender a BMO Insurance policy?
To cancel or surrender your policy, contact BMO Insurance by phone or email and submit a formal request. For permanent policies with cash value, you may be paid the remaining value minus applicable fees. Ensure you understand any tax implications or loss of coverage before cancelling.
How soon are death benefits paid by BMO Insurance after a claim is submitted?
Once all required documents are received, BMO Insurance typically processes death benefit claims within 30 days. Delays may occur if additional verification or paperwork is required. Prompt response and clear documentation ensure faster payout.
What flexible features can I find with BMO Insurance life insurance policies?
BMO Insurance offers premium flexibility, policy loans, and withdrawal options on permanent policies. Premiums can sometimes be switched to a lower schedule or offset after sufficient cash value is reached. Optional riders and assistance services can also enhance policy coverage.
What are the main differences between BMO Insurance’s term and whole life insurance?
Term life covers you for a defined period at lower, temporary rates, while whole life insurance provides lifelong protection and cash value accumulation. Whole life also offers policy loans, paid-up additions, and annual performance bonuses. Each product fits different financial goals and needs.
Does BMO Insurance offer support services beyond life coverage?
Yes, BMO Insurance’s Health Advocate™ Plan offers 24/7 access to health advice, virtual medical services, counselling, and family support. These services are included with eligible policies, enhancing client well-being beyond simple coverage.
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