BMO Insurance is lowering level cost of insurance (LCOI) rates on universal life insurance contracts with a face value of $500,000 or more.
BMO has announced that new business applications and term conversions received on or after Dec. 1, 2014 for its Life Dimensions and Life Provider universal life insurance plans will obtain significant rate improvements on policies with a face amount of $500,000 or higher.
In addition, BMO has raised the new minimum sum insured to $100,000 for Life Dimensions LCOI plans and to $50,000 for term conversions to Life Dimensions LCOI plans.
On Jan. 1, 2015, BMO says that the minimum deposit amount required for a Life Dimensions investment in a guaranteed market indexed account will be lowered from $5,000 to $2,000 for LCOI or yearly renewable term plans.
Finally, the insurer has also increased its first year commission rates. Commissions are now 60% for LCOI Life Dimensions coverage, 55% for Life Dimensions PRESTIGE plans, and 60% for Life Provider plans.