BMO Insurance will allow certain life insurance policyholders to apply for an advance of their policy’s death benefit if they meet certain conditions.
On Tuesday, the Toronto-based insurer announced the launch of the Financial Hardship Life Advance, a non-contractual benefit available to permanent life insurance policyholders who are facing financial hardship and have a life expectancy of five years or less.
According to a release, the new program will provide as much as 50% of a policyholder’s death benefit, up to a maximum of $250,000. The benefit is payable in annual instalments over the course of five years.
“Canadians are sometimes faced with unexpected medical-related expenses at a very difficult time in their lives,” Steven Cooney, senior vice-president, head of individual life and annuities at BMO Insurance, said in a release. “We want to do more to help our policyholders cope with health-related hardships.”
The new offering is an extension of BMO’s Compassionate Benefit Program, which also includes a Terminal Illness Life Advance, which can provide terminally ill policyholders with a lump sum payment of 50% of their death benefit, up to a maximum of $250,000.