Life Insurance for Physicians vs OMA Insurance

Ontario physicians often turn to the Ontario Medical Association (OMA) Insurance for coverage, assuming it’s tailored to their unique needs. However, OMA Insurance’s life, disability, and critical illness policies often fall short when compared to plans from other insurers. From higher premiums and restrictive coverage to less flexibility and weaker benefits, there are several pitfalls that can leave doctors underprotected or overpaying. 

In this comprehensive review, we will go over OMA Insurance’s offerings and compare them to independent policies with insurers such as Assumption Life, Manulife, RBC Insurance, and more. 

In this article:

• OMA Group Insurance Offerings At a Glance
• Comparing OMA Insurance to Individual Policies
• OMA Claim Approval Rates and Client Experience
• Frequently Asked Questions (FAQs) About OMA Insurance vs Life Insurance for Physicians

OMA Group Insurance Offerings At a Glance

OMA group insurance offers a few term offerings, all of which expire at age 75. If you’re looking for coverage past age 75, their Term 75 can only provide 10% of your original coverage amount. It’s also important to note that in order to qualify for any of their insurance offerings, you must also have their OMA membership, which is an additional cost you’ll pay separately from any insurance plans you have with them. This means that if you have coverage with OMA, you’ll have to continuously maintain the membership cost to keep your coverage with OMA active. 

OMA Term Life 10 & 20

• Flexible and convertible coverage
• Coverage from $100,000 to $3,000,000 for both OMA Flex 10 and Flex 20 policies.
• Convertible to Group Level Term to Age 100 coverage without medical evidence before age 65.
• Rates are level during their term and renew every 10/20 years and eventually expires at age 75
• Optional life insurance coverage for your children with no medical evidence required

OMA Term 75

OMA’s Term Life Plus 75 program has a few unique features.

• Coverage up to $1,000,000 
• Option for increased coverage amount with no medical evidence: If you’re under 60, you can increase your original coverage amount by 10% annually up to 10 years after purchase with no medical questions, provided your additional premiums are paid, and you do not request a decrease in coverage. You may end this feature anytime, but once declined, it cannot be reinstated.
• Option for Personal and spousal coverage (Coverage up to $1,000,000 each)
• Coverage for life after 75: 
  • Beginning at age 66, coverage will reduce each year until age 74. Premiums do not reduce, but you will receive a refund amount at the end of the year. This amount is no longer published. At age 75, the policy is paid up for life and no further premiums are required, but you’ll only have 10% of your original coverage amount.
• Child rider with no medical evidence required

OMA’s Term 10 and 20 coverage can provide basic coverage. 

In most cases, the OMA Group term 75 plan is more expensive than individual coverage even after the OMA refunds. Historically, this refund has reduced from 60% in 2015 to 20% in 2021. OMA Insurance stopped publishing the refund on insurance in 2022.

OMA Disability insurance

The OMA group disability insurance is partnered with Manulife. OMA offers up to $25,000 per month of disability insurance with either a level or step rate (step rates increase over time with your age). 

Group disability insurance also has some quality deficiencies vs individual disability insurance including:

• Termination date – OMA group disability insurance terminates at age 70, unless you opt for the 70+ extension. The 70+ extension provides coverage for total disability only for up to 12 months. 
• Cost of living adjustment – OMA group disability insurance has no minimum inflation level at claim time whereas individual coverage has a minimum of 2% increase for inflation. 
• Recovery benefit – There is no recovery benefit while on a claim whereas individual disability insurance policies will typically include a benefit to help you recover from disability. 
• Portability – OMA coverage is portable so long as you maintain your OMA membership and pay OMA membership fees. Individual disability insurance means you own the policy and do not need to retain any membership or pay additional membership fees to keep the coverage active. 
• Rates are not guaranteed. OMA Insurance rates and policy provisions are at the discretion of Manulife with 30 days notice. Individual policies are locked into their contract terms and rates. 

If you were to shop options with a broker, individual disability policies like with RBC, Canada Life, and Humania come with guaranteed level premiums, meaning the insurer cannot raise your rate. Over the long run, individual policies are often more cost-effective than OMA’s increasing premiums. 

OMA Critical Illness Insurance

OMA’s group Critical Illness (CI) insurance is also with Manulife, and their rates increase every five years and coverage terminates at age 70. By contrast, individual critical illness policies from insurers like Sun Life, Industrial Alliance, or Foresters, can be purchased with level premiums for 10 years, 20 years, to age 75, or lifetime coverage. 

Many individual CI plans also include return-of-premium benefits (refund of premiums if no claim is made)— which is a feature not available with OMA’s group plan. 

Comparing OMA Insurance to Individual Policies

Below is a comparison between life insurance with OMA insurance versus individual policies shopped with a broker from RBC, Manulife and Canada Life. 

While OMA’s group insurance may seem affordable at first, its increasing premiums, loss of refunds, and limited policy options make individual insurance policies from major insurers more cost-effective in the long run. If you were to shop with a broker, individual policies (life, disability, and CI) are more cost-effective with a wider range of options and additional benefits than OMA’s offerings. 

It is crucial to also note that OMA’s policy definitions and coverage terms are not guaranteed—they may be altered by the insurer or OMA at any moment. In contrast, individually owned insurance policies from leading insurers such as RBC, Manulife, and Canada Life are non-cancellable and renewable. This means that your policy terms are locked in, and the insurer cannot alter your coverage without your consent (ie. if you choose to increase/decrease coverage yourself).

OMA Claim Approval Rates and Client Experience

Physicians seeking long-term stability and confidence in the management of their claims by a reputable insurer known for policies tailored towards physicians should highly consider individually owned disability, life, and critical illness insurance over OMA’s group coverage. 

With an individual policy, your contract terms are secured from the very first day and remain unalterable by the insurer. Individual disability insurance from insurers like RBC and Canada Life also feature enhanced definitions to improve the claims process for doctors, and make it easier for them to qualify for claims.

Frequently Asked Questions (FAQs) About OMA insurance vs Life Insurance for Physicians

Get Expert Advice on the Best Insurance for Physicians 

Choosing the right insurance is a crucial decision. While OMA Insurance provides a basic group plan, its rising costs, lack of flexibility, and weaker guarantees make it less competitive than individual policies from RBC, Canada Life, Sun Life, and other leading insurers. 

The best life insurance, disability insurance, and critical illness insurance for doctors in Ontario comes from individually owned policies that offer: 

✅ Level premiums 

✅ Stronger definitions for easier claims

✅ Customizable benefits 

✅ Guaranteed contract provisions

If you’re a doctor in Ontario looking for the most cost-effective insurance options, you don’t have to settle for OMA’s limited coverage. Here at Protect Your Wealth, we work with and compare quotes and policies from the best life insurance companies in Canada to help find the perfect solution for your needs. We’ve been providing expert life insurance solutions since 2007, including no medical life insurance, critical illness insurance, and disability  insurance, to build the best package to give you the protection you need.

To schedule a consultation about your income protection goals, or if you have any questions about insurance in Ontario or Canada, please Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Toronto, Vancouver, Edmonton, and Portage la Prairie.