Should You Get a BMO Annuity Policy?

The Truth About BMO Annuities

In Canada, annuities are issued only by life insurance companies, not banks. Banks such as BMO sell annuities through their licensed financial advisors, not by the bank tellers or standard branch staff. At the Bank of Montreal, annuity policies are typically issued by BMO Insurance, not the bank itself.

Which insurance companies issue annuity policies in Canada?

Insurance companies who issue annuity policies are:
• BMO Insurance
• Canada Life
• Desjardins Insurance
• Empire Life
• Equitable Life
• ivari
• Manulife
• RBC Insurance
• Sun Life

Does the Bank of Montreal issue annuity policies?

No, BMO Bank does not issue annuities. In Canada, only life insurance companies can issue annuity policies. BMO distributes annuity policies through their financial advisors usually from BMO Insurance or BMO Private Wealth Management. BMO advisors sell annuities that are underwritten and usually issued by BMO Insurance.

Which Insurance Companies Does BMO Offer?

Advisors from BMO will typically offer annuities from BMO Insurance, their in house life insurance company. BMO does not usually compare annuity quotes from other Canadian insurers.

Pros and Cons of Buying Annuities from the Bank of Montreal

Pros of Buying BMO Annuities
• Trusted Brand: BMO is well known and reputable Canadian bank and is considered one of Canada's top 5 banks.
• Convenience: If you already bank with BMO, it keeps your accounts all in one place.
• Easy: Manage all your investments under your BMO accounts.

Cons of Buying BMO Annuities
• Few Choices: BMO usually works with one company, BMO Insurance their in house provider.
• No Comparison Quotes: You won't see a list of 10 life insurance companies like you would with an annuity broker, meaning you will receive a lower monthly income .
• Not Issued By BMO: The annuity policy is not issued by BMO but by BMO Insurance, a separate legal entity with significantly fewer assets and is not backed by the financial strength of the bank.

Do Independent Insurance Brokers Offer Better Value?

Yes, independent annuity brokers work with multiple life insurance companies in Canada. They compare annuity quotes giving you more options and potentially a higher monthly income.

BMO vs Annuity Broker Quote Comparison

Annuity Details:

• Sex: Male
• Age 65
• Amount: $100,000
• Fund Type: Registered
• No Guarantee option selected
• Payments to start in one month

Insurance Company	Monthly Income $ Registered Funds Age 65
BMO Insurance	582.70
Canada Life	538.54
Desjardins Fin.	568.79
Empire Life	540.76
Equitable Life	n/a
Manulife	584.56
RBC Insurance	539.75
Sun Life	551.02

Insurance Company	Monthly Income $ Registered Funds Age 65
BMO Insurance	582.70

Before Choosing BMO, Have You Seen a Comparison Quote?

BMO advisors offer limited choices. We compare quotes from all the insurers to help you get more income. Complete the form to compare quotes from the best insurers like Canada Life, Empire Life, Manulife, Sun Life, etc. and see for yourself.