Bank of Montreal’s Mortgage Life Insurance Policy

Mortgage Life Insurance is available
from Bank of Montreal.

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.

Bank of Montreal Mortgage Life Insurance is available directly through the insured’s lender.

The policies cover the outstanding mortgage balance at the time of death, up to a maximum of $600,000. A maximum of two people can be covered under the policy and the policies are underwritten by Sun Life. The premiums on the plan are based on the insured’s age and the amount of his or her mortgage balance. Premiums will not increase for the duration of the mortgage even if the insured’s health changes.The cost of insuring two people with joint coverage is 50% more than the cost of insuring the older of the two.

In addition, Mortgage Life Insurance premiums are included with the insured’s regular monthly mortgage payments.

The insured has the option of adding a Mortgage Disability Insurance component to the mortgage protection. In terms of the pricing, the Mortgage Life insurance offered through the Bank of Montreal is generally much more expensive than equivalent Term Life Insurance. A 48-year-old, male non-smoker taking out $500,000 of mortgage life insurance would pay $215.00 a month with the Bank of Montreal plan.

Below we compare the rates, for that same 48-year-old, male non-smoker, but this time, with Individual Term Life Insurance.

$500,000 of Term 10 from Unity Life is $65.70 a month.

$500,000 of BMO Insurance’s Individual Term 10 Insurance (sold through a broker) is $68.40 a month.

$500,000 of BMO Insurance’s Individual Term 20 Insurance (sold through a broker) is $136.35 a month

$500,000 of Equitable Life Term 20 is $139.95 a month.

$500,000 of Term 30 with Unity Life is $250.65 a month.

$500,000 of BMO Insurance Individual Term 30 Insurance (sold through a broker) is $273.15 a month.

For more details on Individual Life Insurance compared to Mortgage Life Insurance, you can contact us at 1-800-899-4849, or you can visit our Mortgage Life Insurance Guide or our Mortgage Life Insurance Calculator.

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  • Insurance Advice
    May 26, 2013 at 4:19 am

    Why would anyone buy mortgage insurance. It’s decreasing coverage and horrible deal.

    The bank is the beneficiary. it’s not portable no cash value or conversion options.

    • LSM Insurance
      May 26, 2013 at 1:19 pm

      Thanks for the note. Agreed in the vast majority of instances it does not give a good value. Some bank sold mortgage insurance plans use blended smoker and smoker rates. This can provide a good deal to certain smokers especially older smokers.