A Closer Look: BMO Insurance’s Direct Term

Unity Life of Canada joined the Foresters family in April 2008 and as of Jan 23 2012 changed their name to Foresters Life Insurance Company.

In 2001, Bank of Montreal’s Life Insurance division, BMO Life, began offering a unique twist on term life insurance through their BMO Direct Term product.

It’s only available directly from a licensed agent via their call centre, but before you pick up the phone, let’s take a closer look at what you’re getting with BMO Direct Term:

Payouts range from $25,000 to $5 million spread out through $1,000 instalments and the premiums are guaranteed. As BMO is the only bank in Canada to offer AirMiles with their banking products, naturally their insurance products, including Direct Term, qualify for AirMiles as well.

Immediate coverage is offered at a face amount of up to $250,000, if you can answer no to certain health questions over the phone. Still, if you don’t immediately qualify for coverage, BMO can offer you a $100,000 accidental death benefit.

Unfortunately, pricing is much higher than traditional individual term plans, especially if you’re purchasing a policy with a shorter term.

40-year-old Male, Non Smoker, at a Preferred Rate of $500,000

Term 10: BMO $49.27 – RBC Insurance $26.01

Term 20: BMO $64.76 – Equitable Life $46.80

Term 30: BMO $85.30 – Unity Life $81.00

Since BMO’s Direct Term Plan can only be purchased over the phone, you also miss out on the personal touch of a face-to-face meeting, like what you would get if you were represented by a broker. The representatives on the other end of the line are unable to advocate on your behalf and shop around for the best rate, the way a broker can.

While BMO’s Direct Term Life insurance policy has some unique features, it can’t offer customized advice and strategies the way a broker can.

You can get a free quote by visiting our Instant Quote Page or feel free to contact me directly at 1.866.899.4849

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  • LSM Insurance
    August 12, 2010 at 6:54 pm

    Thanks for the note. The irrevocable beneficiary must also sign off on any policy changes.

  • Rein
    July 29, 2010 at 5:52 pm

    I was wondering how can i change the beneficiary in my term life insurance? If my original (with AIG) policy states that I have put an “irrevocable” beneficiary…can I still change it if my circumstances has changed?
    thank you.

  • LSM Insurance
    July 5, 2010 at 7:37 am

    Hi Suzanne,

    Thanks for the note. Term life policies do not have any surrender penalties. Most Universal Life policies do have surrender penalties in the first 7 to 10 years but you should be past this point.

    One tip to consider always get a complete physical before canceling your life insurance. You should also contact your broker or BMO directly at 1.800.387.9855 to verify your policy details.

  • Suzanne
    July 4, 2010 at 8:14 pm

    Would like to know what would the penalty be for cancelling our policy with you. My husband and I have been members for over 15 years.

  • LSM Insurance
    January 19, 2010 at 12:28 pm

    Hi Doug,

    Thanks for the note. You should be able to do this at no charge but you would have to contact your BMO broker or BMO directly.

    Regards … Lorne

  • Douglas
    January 19, 2010 at 12:00 pm

    I have a Universal life policy that is over half paid out. I would like to change the investment portion on this policy . Is it possible to do this without excess fee’s or penalties? How would I go about it?

  • LSM Insurance
    December 16, 2009 at 2:48 pm

    Hi Arthur,

    Thanks for the note. You would have to contact your broker or BMO directly. Their customer service centre number is 1.800.387.4483

  • arthur
    December 16, 2009 at 1:56 pm

    i have a small policy through BMO and would like to fnow if i have a cash value on it that i can take out ?

  • LSM Insurance
    November 24, 2009 at 9:28 am

    Hi Rob,

    Thanks for the note. You can contact BMO (contact details below) or your broker and they can send you a policy summary. Regards …

    Bank of Montreal
    119 Rue St-Jacques
    Montreal, Quebec
    H2Y 1L6

    Phone: 1-800-387-4483 (BMO Life Assurance Company) 1-866-360-9765 (BMO Life Insurance)

  • Rob
    November 24, 2009 at 1:54 am

    Who do I contact to get information on an insurance policy that stared with AIG. I have been paying premiums and require information as there has been no information sent to me about this policy.

    Please have someone contact me as soon as possible.

    Thank you