BMO Insurance has announced its “first major push” into the whole life market with the launch of its BMO Insurance Whole Life Plan.

The new product is a non-participating whole life insurance plan offering 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.

Client expectations are evolving

“In today’s market, client expectations are constantly evolving,” stated Peter McCarthy, President and CEO, BMO Insurance in an announcement May 25. “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.”

The plan includes a performance bonus which is calculated annually that is used automatically to add “paid-up” insurance coverage. This increases the total death benefit and cash value available on the policy.

Minimum performance bonus rate

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, says the company.

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. If clients want to stop paying premiums completely, they can elect to reduce their basic coverage to a schedule of guaranteed amounts.

Built-in guarantees

“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 McCarthy.