How it works

Performance Bonus Rate

How we determine the Performance Bonus Rate

The Performance Bonus Rate takes into account the rate of return of a portfolio2 of fixed income investments and enhanced equity investments designed to target higher overall portfolio yields. To reduce the year-to-year fluctuations (i.e. volatility) of the Performance Bonus Rate, BMO Insurance uses a smoothing formula with a goal of generating more stable, long-term returns.

Long Term Bonds + Call Options + Smoothing Formula = Performance Bonus Rate

Performance Bonus Rate (May 1, 2024 to April 302025)

The Performance Bonus Rate for BMO Insurance Whole Life will be 5.50% effective May 1, 2024 to April 30, 2025. We will apply this rate on the policy anniversary to calculate the Performance Bonus and purchase additional paid-up” insurance coverage (or a Paid-Up Addition”) which increases the amount of the death benefit and cash value available on the policy at no additional cost above the premiums due for the basic coverage.

Historical Performance Bonus Rate

May 1, 2017 - April 3020185.50%
May 1, 2018 - April 3020195.75%
May 1, 2019 - April 3020205.75%
May 1, 2020 - April 3020215.75%
May 1, 2021 - April 3020225.50%
May 1, 2022 - April 3020235.50%
May 1, 2023 - April 3020245.50%
May 1, 2024 - April 3020255.50%

2 As part of a BMO Life Assurance Company policy you do not own a legal interest in any security or fund.