The EMIA - another exclusive from BMO Insurance
Submitted by Victoria on July 7, 2021 - 3:39pm
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| When it comes to selecting investment accounts on a universal life policy, how can you get the upside potential of equity market returns and a guarantee that the credited rate will never be negative?
The Enhanced Market Indexed Account
Using a powerful combination of long-term bonds and enhanced equity options, BMO Insurance has created an account that gives you both!
Simply put, the EMIA is a universal life insurance investment account that combines a portfolio of long-term bonds and call options. | 
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The approach
The EMIA credits you with a daily interest rate based on a portfolio of enhanced equity investments which are used to mitigate investment risk during market downturns. The investments for the North American Equity EMIA are indexed to the Low Volatility TSX (TXLV) and S&P500 (SP5LVI).
Smoothed returns
The credited interest rate on the EMIA may change every three months, based on the performance of a portfolio of low volatility enhanced equity investments. To further reduce volatility, BMO Insurance applies a smoothing formula to provide you with a more stable credited rate.
Guaranteed return
With the EMIA, BMO Insurance guarantees that the credited rate on this account will never be negative, even if the equity market index returns are in a downturn!
For more details, check out the EMIA page on bmoinvestpro.ca.
1 This rate is effective from July 1, 2021 to September 30, 2021. The credited interest rate may change every calendar quarter, based on the performance of the portfolio. We guarantee that it will never be negative.
Note: This account is available on any new or in force Life Dimensions, Life Dimensions (Low Fees) or Wealth Dimensions policy as long as the issue date is on or after November 18, 2010.
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