BMO to offer advance payment of death benefit for certain permanent life policyholders

By Staff | October 15, 2019 | Last updated on October 15, 2019
1 min read

BMO Insurance will allow certain life insurance policyholders to apply for an advance of their policy’s death benefit if they meet certain conditions.

On Tuesday, the Toronto-based insurer announced the launch of the Financial Hardship Life Advance, a non-contractual benefit available to permanent life insurance policyholders who are facing financial hardship and have a life expectancy of five years or less.

According to a release, the new program will provide as much as 50% of a policyholder’s death benefit, up to a maximum of $250,000. The benefit is payable in annual instalments over the course of five years.

“Canadians are sometimes faced with unexpected medical-related expenses at a very difficult time in their lives,” Steven Cooney, senior vice-president, head of individual life and annuities at BMO Insurance, said in a release. “We want to do more to help our policyholders cope with health-related hardships.”

The new offering is an extension of BMO’s Compassionate Benefit Program, which also includes a Terminal Illness Life Advance, which can provide terminally ill policyholders with a lump sum payment of 50% of their death benefit, up to a maximum of $250,000. staff


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