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.
Performance Bonus Rate (May 1, 2024 to April 30, 2025)
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.