New partnership announced to benefit BMO Insurance clients
Equitable Bank, a wholly owned subsidiary of Equitable Group, has entered into a new partnership with BMO Insurance.
Under the new partnership, BMO Insurance Whole Life policy owners can participate in the Equitable Bank CSV (cash surrender value) line of credit program. Through that offering, policy owners are allowed to borrow up to 90% of the cash surrender value of their insurance policies, tax-free, without making ongoing payments and affecting their policy’s growth.
“We are excited to be adding another reputable insurance provider to our CSV product suite,” says Andrew Moor, President and Chief Executive Officer, Equitable Bank. “We look forward to working closely with advisors who are contracted with BMO Insurance to further build out our CSV lending product line, and to ensure that their clients’ financial needs are being sufficiently met.”
Equitable Bank’s CSV Line of Credit is available to Canadians who meet the following requirements:
- Aged 50 years old and above;
- Own a whole life insurance policy with a partnered insurer; and
- Have adequate cash surrender value in their policy to secure a loan.
“An individual’s life insurance policy is a strong, and often underutilized retirement planning asset,” said Steve Cooney, Senior Vice President, Head of Individual Life and Annuities, of BMO Insurance. “We are pleased to be able to offer the Equitable Bank CSV Line of Credit to our whole life insurance policy owners as a means to help them realize their financial goals.”
Equitable Bank first launched its CSV Line of Credit in December, initially making it available to clients of Great West Life, London Life, and Canada Life; in April, the three companies announced that they were merging into one company under the Canada Life brand.
According to the bank, around 22 million Canadians own some form of life insurance; together, their coverage amount is estimated to surpass $4.3 trillion. The bank also estimated that by 2023, the annual origination volume of life insurance secured loans will reach approximately $1 billion.
Read the original article at https://www.lifehealthpro.ca/rss/