TORONTO, Oct. 10, 2019 /CNW/ - BMO Insurance today
announced the launch of the North American Equity Enhanced Market
Indexed Account (EMIA), a new investment option available
exclusively on its universal life insurance policies.
"People in Canada want more
certainty when it comes to their life insurance policies," said
Steven Cooney, Senior Vice
President, Head of Individual Life and Annuities, BMO Insurance.
"This has become even more important given recent market
volatility."
The returns credited on the investment component of universal
life insurance policies are important to meeting financial
objectives. In today's low interest rate environment, some policy
holders want higher returns than are available with guaranteed
interest options, yet may not want the risks associated with
equity-linked accounts. For these individuals, BMO Insurance
created the EMIA.
"The BMO Insurance EMIA is an ideal investment option for those
wanting the upside potential of equity-linked returns without the
risk of negative returns," said Cooney.
The investment strategy backing up the EMIA is managed by BMO
Insurance in partnership with BMO Capital Markets. Using a
combination of long term bonds and enhanced equity investments,
they can mitigate investment risk during market downturns. The
credited rate is indexed to the S&P/TSX Composite Low
Volatility Index (TXLV) and S&P500 Low Volatility Index
(SP5LVI), giving policy owners exposure to returns linked to both
the Canadian and U.S. markets. BMO Insurance applies a smoothing
formula to provide its policy owners with a more stable credited
rate on their universal life insurance policies.
For more information on the Enhanced Market Indexed Account and
other BMO Insurance products, please visit:
bmoinsurance.com/advisor.
About BMO Financial Group
Serving customers for 200
years and counting, BMO is a highly diversified financial services
provider - the 8th largest bank, by assets, in North America. With total assets of
$839 billion as of July 31, 2019, and a team of diverse and highly
engaged employees, BMO provides a broad range of personal and
commercial banking, wealth management and investment banking
products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
SOURCE BMO Financial Group