BMO Insurance debuts new whole life plan option

by Leo Almazora25 Sep 2020

BMO Insurance is offering its whole-life policyholders a new option to get access to capital while still having life insurance to protect their business or estate.

Under the newly announced Wealth Accelerator option, clients have the opportunity to access more liquidity in the early years following their purchase of an insurance policy. It complements the existing Estate Protector option, which places an emphasis on superior long-term death benefit and cash values.

“Since the initial launch of BMO Insurance Whole Life in 2017, advisors and their clients have focused on the simple, flexible and guaranteed elements of this product,” Daniel Walsh, vice-president for Business Development, BMO Insurance, said in a statement. “With the addition of the Wealth Accelerator, Canadians now have another option when considering strategies for financial protection of their estate or business.”

Clients can select either option when they apply for a BMO Insurance whole life policy. According to the firm, both the Wealth Accelerator and Estate Protector options on BMO Insurance Whole Life Insurance policies come with the same promise of simple product design, built-in flexibility, guarantees, premium payment options, performance bonus, and riders. However, each option has its own premium rates, guaranteed cash values, and death benefit growth features that are tailored toward different needs.

With its higher upfront cash values, the Wealth Accelerator option offers greater upfront liquidity for life insurance policyholders, which could be an ideal solution for business owners who don’t want their capital tied up in a life insurance policy. The higher upfront cash value may also be used as collateral to access a third-party loan for business or other opportunities.