BMO Insurance’s Guaranteed Life An In Depth Analysis

BMO's Guaranteed Life Plus
  A Closer Look
photo by Eric Wardy

BMO Insurance's Guaranteed Life Plus is only available through BMO's call centre and not through its broker network. It is a Guaranteed Issue policy so there are no medical tests or health questions. On the surface this looks attractive but this convenience comes with many underlying issues.

The plan features the following:

• Coverage for the insured aged 40 to 75

• Coverage is available in five premium options: $20/month, $30/month, $45/month, $60/month and $75/month.

• Cash values accumulate in the plan from year three

• Non-smokers and smokers pay the same rate.

• There is a two year waiting period on the basic death benefit

• The death benefit by non-accidental death is limited in the first two years to a return of premium without interest.

Advantages

• There are no health questions

• Smokers pay the same rate as non-smokers, so if you smoke, you get a good deal.

• The plan pay out 5 times the initial face amount if the insured dies by accident prior to age 85.  The accidental death coverage also starts from day one.

Disadvantages

• Premiums are very high when compared with coverage from other carriers.

• There's a two year waiting period on the death benefit with no interest.

The following is pricing on BMO's Guaranteed Life Plus Plan for a 60-year-old female:

$20/month is $3,250 of basic coverage

$30/month is $5,000 of basic coverage

$45/month is $7,550 of coverage

$60/month is $10,150 of coverage

$75/month is $12,700 of coverage

As stated above plans pays five times the face amount in the event of accidental death prior to 85. Below is a comparison with BMO's primary competitors in the non-medical life insurance market, Assumption Life and Canada Protection Plan.

The same 60-year-old female non-smoker would pay $51.45/month with Assumption Life and $50.63 with Canada Protection Plan for $15,000 of basic coverage. The CPP plan does not pay out extra for death by accident and the Assumption pays out double for death by accident.  These plans do have a limited number of health questions, but they pay out the death benefit from day one.

You can get more details by visiting our Non-Medical Life Insurance Instant Quote Page or contact us at 1-866-899-4849.