BMO Insurance announced on Monday the launch of two new simplified insurance policies that are targeted towards younger clients, including one that combines life insurance with living benefits coverage.
insureNOW is a new basic term to age 65 life insurance policy available to clients between the ages of 18 and 49. It provides coverage ranging from $50,000 to $250,000, with guaranteed premiums payable to age 65.
insureNOW Plus has all of the features of insureNOW, as well as living benefits insurance, which provides coverage for four critical illness (CI) conditions plus accidental disability.
“We’ve introduced these innovative new plans for individuals who are looking for a fast, convenient and affordable way to purchase insurance – those who want coverage and want it now,” said Peter McCarthy, president and CEO of BMO Insurance. “There’s a gap in the market for a product of this kind – one that offers the benefit of an insurance plan with a turn-key application process and no medical test.”
McCarthy pointed to a recent BMO study in which 72% of Canadians aged 18-34 reported that they think having comprehensive coverage is the most important part of an insurance policy. In addition, 27% said they think it is important to have a plan that will provide acceptance without a medical exam.
“The younger generation knows that life insurance is critical to ensuring that they and their loved ones are well-prepared for life’s unexpected events,” said McCarthy. “We want to make sure that we are providing them with policy options that cover many of their needs, and with a simple and convenient application process.”
The living benefits coverage under insureNOW Plus provides a one-time payout of a percentage of the sum insured if the policyholder qualifies for accidental disability benefits, or has been diagnosed with one of the CI conditions covered by the policy, including heart attack, stroke, life threatening cancer and coronary artery bypass surgery.
The accidental disability benefit can be paid if the policyholder is unable to work or perform their normal activities for a period of 180 consecutive days, as a result of an accidental injury.
Policyholders can choose from two options for the living benefits component of the plan. Option 1 would provide the policyholder with either a CI benefit worth 50% of the sum insured or an accidental disability benefit worth 15% of the sum insured. Option 2 would provide either a CI benefit worth 25% of the sum insured or an accidental disability benefit worth 7.5% of the sum insured.
Once either benefit is paid, the sum insured will be reduced by the amount of the claim payment and future premiums will be based on the reduced sum insured.
insureNOW Plus policyholders and their families also receive access to an assistance services program, including a service that provides a second opinion on clients’ critical illness diagnosis and treatment options.
Both insureNOW and insureNOW Plus plans offer the option of extending life insurance coverage past age 65.