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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.

FeatureBMOTerm Life
Monthly Premium$72.00$25–$35
20-Year Total Cost$17,280$6,000–$8,400
Coverage TypeDecliningLevel (stays at $500K)
BeneficiaryThe BankYour Family
UnderwritingPost-ClaimFull (Upfront)
Portable?NoYes
Can Be Denied After Death?YesNo

What BMO Won't Tell You About Their Mortgage Insurance

1

BMO's Mortgage Life Insurance charges approximately $72.00/month for a $500K mortgage — over double what independent term life would cost.

2

BMO receives the death benefit, not your family. Your surviving spouse cannot choose to use the money for living expenses, education, or anything else.

3

BMO uses post-claim underwriting, which means your health is only fully assessed after a claim is made. This shifts risk onto your family.

4

Your BMO mortgage insurance is not portable. Refinance elsewhere and your coverage disappears.

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