We’re pleased to announce that effective May 1, 2020 to April 30, 2021, we are maintaining the Performance Bonus Rate for the BMO Insurance Whole Life Plan at 5.75%.
We will apply this rate on each policy’s anniversary in that period to calculate the Performance Bonus and automatically purchase additional insurance coverage (i.e., “Paid-Up Additions”).
The rate takes into account the return of a portfolio of fixed income and enhanced equity investments (i.e. an option strategy), as well as our smoothing formula that minimizes year-to-year fluctuations of the declared rate. Over the long-term, the rate can be sensitive to economic cycles and market corrections, so we recommend that you continue to show your clients illustrations using alternative scenarios such as the “current -1%” and “current -2%” rates from the Wave software.
Thank you for your business and entrusting us with the financial well-being of your clients.
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