Mortgage Insurance Solutions

BMO Insurance Critical Illness & Term Insurance For advisor use only

Table of contents

The Opportunity 2

The Solution 3

Case Study 4

The Results 5

Preparing a Quote 6

Most people put a lot of effort into finding the right home, the right financing and the right home insurance, but spend almost no time thinking about how to protect this important asset in the event of an unexpected death or a serious illness in the family. They may simply decline coverage because they don’t understand the need.

As an insurance advisor, you are in a position to advise your clients about the importance of eliminating mortgage

debt in the event of the homeowner’s death, and of having extra funds available to help cover mortgage payments at a time the homeowner is recovering from a critical illness.

By combining life and critical illness insurance in one low-cost package, you are providing your clients with insurance coverage that can help offset their mortgage payments in the case of a death or a covered illness.

The Opportunity

Are your clients first-time homebuyers, renovating or moving into a bigger home and a bigger mortgage? If so, show them how to protect their most important asset – their home.

2Critical Illness & Term Insurance

Introducing Mortgage Insurance Solutions from BMO Life Assurance CompanyBMO® Insurance has developed mortgage solutions that can be customized to meet each client’s needs. Whether they are looking for inexpensive life insurance, flexible critical illness insurance or a combination of both, we can help you meet their needs.

BMO Insurance Term plans offer:• competitive rates

• flexible conversion options including our whole life and leading universal life plans

• attractive discounts for clients with good health history

• single or joint life coverage options

• living benefit riders

Sales Tip

Mortgage protection with Life and Critical Illness Insurance.

A combination of both term life and critical illness coverage under one plan is the cornerstone of a complete mortgage insurance solution. Bringing BMO Insurance’s two competitive plans together with one policy fee gives you a competitive edge in closing the sale.

BMO Insurance Living Benefits plans and riders offer: • comprehensive coverage – 25 covered conditions

• competitive rates

• flexible return of premium options

• The BMO Insurance Health AdvocateTM Plan

The options are unlimited!• Combine Term 10 or Term 15 insurance with a Living

Benefit 10 rider

• Combine Term 20, Term 25 or Term 30 insurance with a Living Benefit 10 or 20 rider

• available for both Single Life and Joint Life coverage

The Solution

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Sales Tip

Generate more sales by ordering our consumer mortgage brochure (Form 364E) highlighting the benefits of using life and critical illness insurance to provide your clients with complete mortgage protection.

Client Details:John and Sarah have just purchased a new home and don’t have any insurance protection to cover the outstanding debt. Their advisor reviews a BMO Insurance Mortgage Solution with them:

$300,000 mortgage for John & Sarah

$75,000 LB20 CI rider John’s Life

$75,000 LB20 CI rider Sarah’s Life

Funds available to reduce the mortgage debt or cover mortgage payments and other expenses in the event John or Sarah is diagnosed with a critical illness.

$300,000 Joint Life Term 20

Life Insurance John & Sarah

Mortgage can be paid off in the event of John or Sarah’s death.

Case Study

If I were no longer around, who would pay my mortgage?

BMO Insurance Critical Illness and Term Insurance

4Critical Illness & Term Insurance

Why Mortgage Insurance Solutions from BMO Insurance make sense:

• guaranteed premiums

• Coverage is fully portable – stays in place when your client changes homes or mortgage lenders.

• Benefits are paid directly to the named beneficiary, tax free, for their use as needed.

• Coverage is convertible to lifetime coverage without medical requirements.

• Depending on your client’s health, they may qualify for a preferred rate.

The Results

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How to illustrate a Mortgage Insurance Solution using the wave software:

There are two ways to illustrate Mortgage Insurance Solutions from the wave software.

Either click on Financial Concepts from the main menu and choose the plan for your client

Once you have entered the client information, enter the client’s mortgage information in the space provided on the input screen.

To optimize the client’s premiums over the amortization period, you can reduce the life, critical illness and any other coverage selected to match the outstanding mortgage balance at each renewal date.

This function is for illustrative purposes and not an automatic feature. Any change to coverage must be initiated by the client before the policy anniversary.

When you complete and print the Mortgage Insurance Solution, the wave will generate the standard illustration along with the custom Mortgage Solution illustration at the same time. The custom mortgage solution illustration includes a benefits proposal and an Excess Life Insurance Net of Mortgage report.

Preparing a quote

OR

From the Term screen, check the Mortgage Concept box.

6Critical Illness & Term Insurance

Let’s connectTo find out more about BMO Insurance products, please call your MGA, contact the BMO Insurance regional sales office in your area or call 1-877-742-5244.

BMO Life Assurance Company, 60 Yonge Street, Toronto, ON M5E 1H5

Ontario Region Quebec – Atlantic Region Western Region 1-800-608-7303 1-866-217-0514 1-877-877-1272

bmoinsurance.com/advisor

For advisor use only. Information contained in this document is for illustrative purposes and is subject to change without notice. The information in this publication is intended as a summary of our products and/or services and may include projected values based on a set of assumptions. Actual results may not be guaranteed and may vary. Please consult the appropriate policy contract for details on the terms, conditions, benefits, guarantees, exclusions and limitations. The actual policy issued governs. Each policyholder’s financial circumstances are unique and they must obtain and rely upon independent tax, accounting, legal and other advice concerning the structure of their insurance, as they deem appropriate for their particular circumstances. BMO Life Assurance Company does not provide any such advice to the policyholder or to the insurance advisor. Insurer: BMO Life Assurance Company TM/® Trademark/registered trademark of Bank of Montreal, used under licence.

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