Review: BMO EasyTerm Life Insurance

by Barry Choi July 13, 2016 / No Comments

Life insurance is one of those things that’s often overlooked but we all know we’ll need it eventually. Once you start researching your needs, you’ll quickly realize that all the options available can be a bit confusing, which is why BMO has introduced EasyTerm life insurance.

Term life insurance is simple in the sense that you pay a set premium for a fixed amount of years. With BMO’s EasyTerm life insurance, you can choose a term of 10, 20, or 30 years and get coverage between $50,000 and $5 million. The monthly premiums you pay are based on your age, smoking status and the amount of coverage you need. The Insurance also comes with some other key features:

  • Guaranteed coverage renewal until you’re 85 (even if your health has changed)
  • Renewal premiums are based on your age
  • No medical exam required for those aged between 18 and 65 who are seeking less than $250,000 coverage (a health questionnaire is required)
  • Benefits paid to your beneficiary are tax-free
  • Option to convert to a term 100 policy with no medical exam before your turn 70
  • Coverage available up to your 86th birthday
  • 30-day money-back guarantee

Term life insurance cons

Normally the biggest con against term life insurance is that if your health deteriorates, it’ll be hard to renew your policy once your term is up. BMO EasyTerm life insurance addresses this with its guaranteed renewal coverage but there are some other things to consider.

Term insurance doesn’t guarantee you a cash payout. Once your premium is up, you have nothing to show for it. That being said, it means you’re alive so that’s not exactly a negative thing.

Some insurance agents push whole life insurance due to its tax advantages but that shouldn’t be your main priority when choosing life insurance. Term life is the simplest way to give you and your family protection.

Why you should have life insurance

Getting life insurance is important since it’s aimed at protecting your dependents financially in case you die. Dependents are anyone who relies on your income so getting life insurance really is for them.

To determine the amount of insurance you need, you have to figure out how much of your income you need to replace and for how long in order to maintain your family’s standard of income. So if you’re expecting your children to be out on their own and making their own money in 18 years, then you’ll probably only need 20 years’ worth of coverage.

If you’re between 18 and 55 when you apply, you can choose to get optional critical illness insurance coverage. It’s worth considering since it’ll give you a lump-sum benefit if you’re diagnosed with a covered critical illness (for example, a heart attack, kidney failure, or a life-threatening cancer) and survive for 30 days. This payout can be spent on anything you want but would obviously come in handy if the critical illness resulted in a lifestyle change. This insurance is optional so it’s really a personal choice if you decide to get it.

It’s better than mortgage life insurance

Most people start to seriously think about life insurance when they buy a home since the last thing they want to do is leave their spouse or partner with a huge mortgage in the event that they die suddenly. For this reason, mortgage life insurance was invented but it’s not a great insurance product.

With mortgage life insurance, you pay the same premium every month but the value of your policy decreases as you continue to make mortgage payments since the payout only covers the outstanding balance of your mortgage. On the other hand, with term life insurance, your payout remains the same for the entire term.

The bottom line

Life insurance is a necessity. If you’re looking for an easy application process and a wide amount of coverage options, term life insurance can be a great way to provide both you and your loved ones with peace of mind.

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Flickr: David Hilowitz