Family life insurance, protection

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.