BMO Insurance is suspending sales of its T100 Plus and T100 Platinum products.
The insurer says that consistently low interest rates have affected the profitability of its long-standing T100 Plus and T100 Platinum non-participating permanent life insurance plans. Instead of increasing prices, BMO has decided to suspend further sales. The company intends to devote its resources to developing universal life products and on other new initiatives instead.
The insurer will not accept applications for Term 100 Plus and T100 Platinum plans after Dec. 12, 2014.
BMO has also pulled out of the larger, non-registered annuity market. On Dec. 1, the insurer stopped accepting special quotes for non-registered life annuities with single premiums greater than $1 million. BMO says that the maximum single premium it will accept for non-registered term certain annuities and all registered plans remains $2 million.