BMO insurance offers policy fee discounts to applicants who add riders to their base policies.
The reason for the discount is because when additional coverage is added as a rider, it is not subject to the same policy fees as stand-alone policies. This can result in substantial savings over the life of the policy. The following are three examples of this for a 40-year-old, male non-smoker:
1. Term life insurance plus critical illness insurance:
$500,000 of Term 10 coverage with a critical illness Term 10 rider of $100,000 would come out to $71.46 when bundled as one policy. However, when you look at both as separate plans, the monthly premium would be $78.21 a month. This represents an annual savings of 9 per cent or $81 a year.
2. A universal life plus critical illness insurance bundle:
$100,000 of Life Provider universal life coverage with a minimum premium and a $50,000 Critical Illness Term 10 rider attached would cost $80.14 a month when bundled under one policy. As separate plans, the monthly premium would be $86.46 a month, which gives you a savings of 7 per cent or $75.84 a year.
3. Universal Life plus Term Life insurance rider, plus Critical Illness Insurance rider:
$100,000 of universal life Life Provider coverage with a $250,000 Term 10 rider and a $50,000 Critical Illness Term 10 rider would have a bundled monthly premium of $98.00 a month, while separate plans would be $107.39 a month. This is a savings of 9 per cent or $112.68 a year.
For more details on life insurance in Canada, visit our Term Life Insurance Instant Quote Page, or contact us at 1-866-899-4849.
