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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, 2025 to April 30, 2026)

The Performance Bonus Rate for BMO Insurance Whole Life will be 5.75% effective May 1, 2025 to April 30, 2026. 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 30, 20185.50%
May 1, 2018 - April 30, 20215.75%
May 1, 2021 - April 30, 20255.50%
May 1, 2025 - April 30, 20265.75%


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

Historical Returns and Stability

The chart below illustrates historical stability of the BMO Insurance Whole Life Performance Bonus Rate (PBR) compared to several key financial indicators.

historical stability of the BMO Insurance Whole Life Performance Bonus Rate (PBR) compared to several key financial indicators.

Performance data is provided for illustrative purposes only. It represents past performance, which is not predictive of future performance.


Sources:
Government of Canada 10-year bonds, June 6, 2025, Bank of Canada.
S&P 500
S&P/TSX Composite Index total return.
Five-year guaranteed investment certificate (GIC) returns are based on nominal yields to maturity. 
Source: Financial market statistics, Bank of Canada. Table: 10−10−0145−01.
Consumer Price Index information is taken from Statistics Canada, January 1914-May 2025.