BMO Insurance 20-Pay Whole Life Plan: Strong Features and Cash Values

Posted on November 6, 2009 and updated January 23, 2019 in BMO Life Insurance, Life Insurance Canada News 3 min read

bmoBMO Insurance offers a wide variety of permanent life insurance policies, some are very competitive, while others could leave you over-paying. BMO’s 20-pay plan, has very aggressive cash values and industry leading paid-up features.

The non-participating feature of BMO’s 20-pay plan means that the client does not participate in the insurance company’s profits and all the values within the policy are fully guaranteed. The plan’s particular asset is its paid up feature. Starting on the tenth policy year, the policy can be paid-up for a reduced face amount with no further premiums required. The reduced face amount will start at 50% and increase 5% each year, until the policy’s 20th anniversary.

Whole Life sales in Canada having been surging in recent years.  This is due to a number of factors with the strongest factor being the rise of Universal Life – Level Cost rates. In many instances these Universal Life plan have gone up by as much as 35%.  Whole Life policies which can be divided into two types: Participating and Non Participating have also gone up in cost and in some cases companies have removed certain Whole Life plans from their offerings all together.  Case and Point – Empire Life’s popular 20 Pay Solution plan is no longer available for sale.  This policy was very well priced and popular among it’s broker network.  Other insurance companies are also looking at further price hikes or removing their 20 Pay plans.  Guaranteed Permanent policies do not fare well in a low interest rate environment and as profitability gets squeezed, insurance companies have to either increase rates or discontinue the sale of these plans. Three year ago BMO Insurance’s 20 Pay plan stood out with strong policy features but the plans premiums were much high than its competitors.  Fast forward to today the policy still has those same great features but the plans premiums are also now among the best in industry.  How long will the rates stay this low – it’s hard to say but if interest rates remain low BMO will likely be under pressure to follow suit of other Canadian insures and raise the rates.

Below is a look at how BMO stacks up against its competition (as of Oct. 2013). A 35-year-old, male non-smoker looking at $250,000 will also be looking at the following premiums:

Western Life – Term 100 – 20 Pay is $241.45 a month

SSQ Life Insurance Company – Whole Life 20-pay Solution plan is $258.53 a month

BMO Insurance’s – 20-pay Whole Life is $258.98 a month

Wawanessa Life Insurance Company – Term 100 – 20 Pay is $275.85 a month

La Capitale -Advantage 20 Pay – $280.62 a month

You can get more details on BMO’s 20-pay plan, as well as other carriers permanent policies, by visiting our Whole Life Instant Quote Page, or by calling our office at 1-866-899-4849.

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Bir
Bir

Hi!
I have got much lower rates in enhanced option 20 pay whole life. The premiums were lower than BMO 20 pay.would the enhanced option not better if looking at premium price?

LSM Insurance
LSM Insurance

Thanks for the note. It would depend on your age, smoking status and coverage amount. Insurance companies have different sweet spots in Terms of their pricing.

Toya
Toya

How much is for a 35 year old female $100,000 had cancer 4 years ago

LSM Insurance
LSM Insurance

Thanks Toya. That will depend on your smoking status, age nearest age and the type of cancer and the treatment and medication.

Walter
Walter

Is this plan still offered. i have a cliet looking for $75,000 and I don’t see it on Compulife.

LSM Insurance
LSM Insurance

Hi Walter, Yes BMO still offers this plan and with everyone elses prices going up or no longer offering the plan. The premiums are now very favorable at many price points.

It should be on Compulife maybe check your company settings.

LSM Insurance
LSM Insurance

Thanks for the note. We will be in touch by email. This is not a participating Whole Life policy. The plan is guaranteed paid up in 20 years. With the rise in premiums on Guaranteed Permanent policies this policy has become a hidden gem for many people.

Chloe
Chloe

Is this a Participating policy. If so what is the current dividend rate and how does it match up with other companies. I would like quotes on $100,000, 42 Female Smoker. Rgds

LSM Insurance
LSM Insurance

Hi Pamela,

Thanks for the note. Yes the premiums are guaranteed and the plan is paid up in 20 years. The policy also has paid up vales and guaranteed cash values. Please let us know if we can help further.

Pamela
Pamela

Are the premiums on this plan guaranteed?