Dedicated to helping protect what you care about.

BMO Protection Plans

Life is full of “ what ifs.”

Life can be exciting – whether you’re buying your first home, getting behind the wheel of a new car, or sending your child to university. You’re ready to take on a mortgage or loan but there’s no way of knowing what tomorrow brings.

What if you were diagnosed with a critical illness or became disabled? What if you lost your job? And then there’s the biggest “ what if ” of all – what if you weren’t around to provide for your family well into the future?

We can’t predict the future, but we can help you plan for it.

Together, we can turn some of those “what ifs” into “ I knows.”

BMO Protection Plans can provide you with insurance coverage on your mortgage, loan, or line of credit to help protect your family, lifestyle, and assets in times of need. Protection options available include:

Life

Job Loss

Critical Illness

Disability

BMO Protection Plans 3

5BMO Protection Plans

Lifestyle Miguel needed financing to purchase his first

home. He took out a mortgage and bought a

one-bedroom condo. Miguel took comfort knowing

that the protection options he chose could help

with his payments upon an approved claim.

Family With their daughter starting university, Mei and

Lee needed to borrow money to help cover the

cost of tuition, accommodations, and textbooks.

They took out a line of credit. They also opted

for Creditor Insurance to help protect their

payments and/or balance in the event of life

loss, critical illness, disability or job loss. They

took an extra step that could potentially help

protect their daughter’s education.

Assets Sue and David considered renovating their house

for years and finally decided to take out a home

equity loan. They worked hard to build their nest

egg and planned for a financially comfortable

retirement. They chose to take insurance

coverage while they are still eligible to apply.

With Life and Critical Illness coverage in place,

they feel comforted knowing that their balance

could be covered upon an approved claim.

What do Canadians commonly worry about the most?

51% of surveyed Canadians are concerned about the financial well-being of their family if they were to suddenly pass away.1

45% of Canadian men and 42% of Canadian women are expected to be diagnosed with cancer in their lifetime.2

On average, 1 in 3 people will be disabled for 90 days or more at least once before they reach age 65.3

In 2016 unemployed Canadians were unemployed for an average 21.3 weeks.4

Source: 1 Insuring for a Financially Secure Future, BMO Wealth Institute, 07/2015 2 Canadian Cancer Statistics, Canadian Cancer Society, 2016 3 A Guide to Disability Insurance, CLHIA, 01/2016 4 Statistics Canada, Labour Force Survey, CANSIM Table 282-0047

The scenarios above are for illustrative purposes only and do not refer to actual clients or cases. !

6 BMO Protection Plans

Monthly IncomeTom & Sophia

(regular income)

Tom’s Income Reduced to 60%*

Without Tom’s

IncomeYour

Income

Tom’s after-tax income $3,000 $1,800 $0

Sophia’s after-tax income $2,200 $2,200 $2,200

Total monthly income $5,200 $4,000 $2,200

Monthly Expenses Expenses Expenses Expenses Your Expenses

Mortgage payment (including creditor insurance) $1,500 $1,500 $1,500

Financial commitments (property tax, maintenance fees, line of credit, personal loan, credit cards, etc.)

$1,200 $1,200 $1,200

Bills (daycare, phone, cable, car insurance, home insurance, hydro, water, heat etc.)

$1,100 $1,100 $1,100

Other expenses (food, transportation, extracurricular activities, entertainment etc.)

$700 $700 $700

Savings (children’s education, retirement, vacations etc.) $200 $200 $200

Total monthly expenses $4,700 $4,700 $4,700

What’s left over after all expenses are paid? $500 -$700 -$2,500

Consider how an income reduction could impact your family, lifestyle, and assets.

Let’s look at some examples from Tom and Sophia:

As you take on a new debt it’s important that you also stress test your income to ensure that your lifestyle is affordable in many circumstances. Complete the Budget Worksheet below or visit bmo.com/mortgageinsurance to complete the digital version. Be sure to provide your lending professional with a copy of this Worksheet, as it will help us recommend products that accommodate your lifestyle.

If Tom was unable to work due to a critical illness or disability, the family wouldn’t be able to manage their current expenses. Without Tom’s income their $500 monthly surplus would become a $2,500 deficit. If Tom had protection in place, managing their expenses would be much easier upon an approved claim.

Please visit bmo.com/mortgageInsurance and refer to the BMO Protection Plan Certificate of Insurance for all terms, conditions, limitations, and exclusions.

!

* The scenario above is for illustrative purposes only. The reduction of Tom’s income to 60% of the initial value represents a reduced income due to long-term disability. There is no standard income one would receive from their employer if they were receiving a long-term disability benefit. Check with your employer to determine your benefit amount.

8 BMO Protection Plans

BMO Protection Plans BMO Protection Plans include Balance & Payment Protection, each representing a pillar to a sound financial plan.

Please visit bmo.com/mortgageInsurance and refer to the BMO Protection Plan Certificate of Insurance for all terms, conditions, limitations, and exclusions.

!

BA

LAN

CE P

ROTE

CTIO

N

PAYM

ENT

PRO

TECT

ION

Life Insurance

If you were to pass away, Life Protection can help with your mortgage balance, so your family won’t have to worry about mortgage payments on top of everything else.

• Maximum coverage amount of $600,000 per loan.

• You’re eligible to apply if you’re between the ages of 18 and 65, a Canadian resident, and a borrower or co-borrower.

Disability Insurance

If you suffer an injury or illness, Disability Protection can help with your payments, so you can focus on recovering.

• Maximum coverage amount of $3,000 per month, for up to 24 months.

• You’re eligible to apply if you’re between the ages of 18 and 65, a Canadian resident, a borrower or co-borrower, and working more than 30 hours per week.

Critical Illness Insurance

If you are diagnosed with a covered critical health issue, Critical Illness Protection can help with your mortgage balance, so you can focus on recovering.

• Maximum coverage amount of $450,000 per loan.

• You’re eligible to apply if you already have Life coverage under this plan and are between the ages of 18 and 55.

• Covered illnesses include certain types of cancers, heart attacks, strokes, and coronary bypass surgery.

Job Loss Insurance

If you involuntarily lose your job, Job Loss Protection can help with your mortgage payments, so you don’t have to worry about your payments on top of finding another job.

• Maximum coverage amount of $3,000 per month, for up to 6 months.

• You’re eligible to apply if you have Disability coverage under this plan, have been continuously employed by the same employer for at least 6 months, are eligible for EI, and are between the ages of 18 and 55.

9 BMO Protection Plans

We’re proud to help our customers when they need us most.

At BMO, we bring a human touch to everything we do. We appreciate the opportunity to support our customers during the toughest of times and show that we’re here to help.

In times of need, BMO Protection Plans can help you meet your financial obligations.

You can apply for insurance coverage on your mortgage or line of credit at any time. Depending on the coverage you choose, approval can be as easy as answering one health question. Choose the options that best suit your needs. As your needs evolve you’re welcome to re-examine your coverage and increase, reduce, or cancel it entirely – at any time without penalty. If you cancel within 30 days from when your coverage begins any premiums paid will be refunded.

Let’s connect.Start the conversation by visiting your local branch or calling 1-877-225-5266.

For more info visit bmo.com/protectionplans

11BMO Protection Plans

Talk with us

1-877-225-5266

Learn more

bmo.com/protectionplans

Visit your local branch

BMO Bank of Montreal

08/17-1353® Registered trademarks of Bank of Montreal.