BMO Insurance recently rolled out their newest insurance plans, InsureNOW and InsureNOW Plus, and their focus is somewhat different and unique compared to the market at large. With an aging population and a greater focus on investment and wealth management, InsureNOW seems to do things quite different – it’s making insurance easier than ever to get for young Canadians, available from ages 18 to 49.
But just how easy and effective is this plan at providing solutions for millennials?
InsureNOW at a Glance
At a glance, InsureNOW seems very simple and direct in nature, with a benefit structure that gives you exactly what’s on paper:
- Term protection up to age 65, with guaranteed premiums from the day you apply;
- Coverage from $50,000 to $250,000. Modest, not bulky, and within the range of what young professionals do need;
- No Medical Exam, so the policy is issued quickly with a much simpler system for determining cost (you pay by your age, gender, and smoking status).
- A “Plus Option” that adds critical illness, disability, and accidental death protection, paid out of your total coverage.
Those four points generally make up what you need to know about the plan. Since it is payable to age 65, BMO’s InsureNOW doesn’t accrue unnecessary costs as you age, and allows you to get an effective and comprehensive plan with clear benefits from day 1.
Against the Market
One of the big decisions when buying life insurance is deciding between the benefits of term life insurance vs permanent life insurance. Term remains a cheaper option, but there’s no doubt that coverage in our senior years will still remain important.
The issue arises then, should you sacrifice a low cost for that long term needs? Not necessarily. In the case of BMO’s InsureNOW, you can have both the benefits of a low-cost term product with the long-term protection of permanent life insurance with BMO Insurance’s Extended Life Benefit.
It’s a unique provision you can choose on this plan that allows you to choose to keep 25% of your original coverage amount on the death benefit and keep it for life, even though you stop paying all premiums at age 65. For those worried about short term debts, but who can’t ignore the importance of long-term financial planning, BMO’s InsureNOW and InsureNOW Plus does offer a great deal of flexibility in that regard.
Considerations of InsureNOW
As a compact, affordable, no-nonsense plan, BMO’s InsureNOW definitely creates a niche in providing an insurance solution to younger Canadians who find themselves cooled against larger, more complicated plans. So at a glance, BMO’s InsureNOW does seem like it can provide a full range of protection anyone with less of a hassle to the buyer.
However one aspect that stands out as a mark against its favor is the lack of a medical exam. While a no medical exam policy does have a number of advantages by being a quicker plan to buy and to provide an option to those with health issues – it can also add an unnecessary cost.
No medical life insurance, by design, always costs more than a life insurance plan that is fully underwritten, which means InsureNOW won’t be able to compare as well in price to plans that make you go through the full underwriting process.
As such, healthier millennials may find this plan costs a little more than should probably be necessary for a plan of this scope. While those with health issues will find it cheaper: those who don’t need to avoid the medical exam should definitely look for plans that require them.
Is InsureNOW Worth Your Money?
For young professionals getting their start in their careers and in their family life, BMO’s InsureNOW offers a definite convenience that is hard to find elsewhere on the market. However, some considerations are in order:
- This is a term to age 65 product. For protection on a mortgage, you may be able to find a more affordable product on a shorter term.
- The inclusion of No Medical Exam means that healthier applicants should still shop around for quotes.
- You should decide for yourself if the Plus option, which can expand the coverage, is appropriate for your needs.
- You do need to decide if you want the Extended Life Benefit when you apply – so you will need to plan your final affairs (far off as they may be) around potentially insufficient coverage later on in life.
As a complete package, this plan indeed does offer an easier way to get insured without the complexity that other plans often demand. As such, it really is a “Do Anything” insurance plan, as long as you’re confident that you do, indeed, need your life insurance to “Do Anything”.