Bank Comparison
BMO Mortgage Life Insurance:
Is It Worth It?
BMO charges approximately $72.00/month for mortgage life insurance on a $500K mortgage for a 35-year-old non-smoking woman. Over 20 years, that's $17,280 for coverage that decreases every month.
BMO Monthly
$72.00
per month
20-Year Total
$17,280
for declining coverage
You Could Save
$8,880–$11,280
with term life
BMO vs. Independent Term Life
Based on a 35-year-old non-smoking woman, $500K mortgage, 20-year term.
| Feature | BMO | Term Life |
|---|---|---|
| Monthly Premium | $72.00 | $25–$35 |
| 20-Year Total Cost | $17,280 | $6,000–$8,400 |
| Coverage Type | Declining | Level (stays at $500K) |
| Beneficiary | The Bank | Your Family |
| Underwriting | Post-Claim | Full (Upfront) |
| Portable? | No | Yes |
| Can Be Denied After Death? | Yes | No |
What BMO Won't Tell You About Their Mortgage Insurance
BMO's Mortgage Life Insurance charges approximately $72.00/month for a $500K mortgage. over double what independent term life would cost.
BMO receives the death benefit, not your family. Your surviving spouse cannot choose to use the money for living expenses, education, or anything else.
BMO uses post-claim underwriting, which means your health is only fully assessed after a claim is made. This shifts risk onto your family.
Your BMO mortgage insurance is not portable. Refinance elsewhere and your coverage disappears.
BMO Mortgage Life Insurance — Frequently Asked Questions
Does BMO offer life insurance for mortgages?
Yes. BMO Bank of Montreal offers BMO Mortgage Life Insurance as an add-on when you take out a BMO mortgage. It pays off your remaining mortgage balance if you die, but BMO — not your family — is the beneficiary. Coverage decreases as you pay down the mortgage while your premium stays flat.
How much does BMO mortgage life insurance cost?
BMO mortgage life insurance costs approximately $72.00/month for a $500K mortgage for a 35-year-old non-smoking woman. Over 20 years, that totals $17,280 for coverage that shrinks every year. Independent term life insurance typically costs $25–$35/month for the same death benefit — without the declining coverage.
Is BMO mortgage insurance the same as life insurance?
No. BMO mortgage insurance is a group creditor insurance product tied to your BMO mortgage. Unlike individual life insurance, BMO is the beneficiary (not your family), coverage declines with your balance, and claims go through post-claim underwriting — meaning BMO reviews your health after you die, which can lead to claim denials.
Can I cancel BMO mortgage life insurance?
Yes. BMO mortgage life insurance can be cancelled at any time without penalty. Before cancelling, make sure your replacement term life policy is already in force. Contact BMO directly to confirm cancellation and request written confirmation.
What's a better alternative to BMO mortgage insurance?
Individual term life insurance typically costs $25–$35/month for a 35-year-old non-smoker — less than half of BMO's rate — and your family receives the full $500K regardless of your remaining mortgage balance. Unlike BMO's product, term life is fully underwritten upfront, portable between lenders, and your family controls the payout.
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