OMA vs Private Insurance for Ontario Doctors: Full Comparison

Choosing the right insurance isn’t just about cost. It’s also about coverage, flexibility, and long-term protection across life, disability, and critical illness. For Ontario doctors, comparing OMA and private plans could impact your financial security for decades.

📖 15 Minute Read
🗓 Originally Published: April 16, 2025
🔄 Updated: May 23, 2025

Life Insurance for Physicians vs OMA Insurance in Ontario

OMA vs Private Insurance for Ontario Doctors: Full Comparison

Choosing the right insurance isn’t just about cost. It’s also about coverage, flexibility, and long-term protection across life, disability, and critical illness. For Ontario doctors, comparing OMA and private plans could impact your financial security for decades.

📖 15 Minute Read
🗓 Originally Published: April 16, 2025
🔄 Updated: May 23, 2025

Life Insurance for Physicians vs OMA Insurance

Many Ontario physicians assume OMA Insurance meets their needs. But in reality, it often delivers less value, flexibility, and control than private alternatives. When you compare OMA’s life, disability, and critical illness coverage to individual policies from providers like RBC Insurance, Manulife and Canada Life, major differences begin to emerge.

From rising premiums and restrictive contracts to limited conversion options and weaker long-term value, OMA’s group insurance frequently underdelivers and becomes more expensive over time. Physicians seeking reliable protection, rate stability, and personalized coverage are increasingly turning to individual plans for better control and outcomes.

OMA Group Insurance Offerings At a Glance

OMA’s group life insurance offers a limited selection of term policies — all of which expire at age 75. If you need coverage beyond that, the Term 75 plan only preserves 10% of your original benefit, significantly reducing its long-term value. Another key drawback is that OMA insurance requires an active OMA membership, which comes with additional fees. This means physicians must continue paying for membership to keep their insurance active, even if the coverage itself no longer meets their evolving needs.

OMA Life Insurance – Limited Value Compared to Individual Policies

OMA Flex Term Life (Term 10/20)

OMA’s Flex Term Life offers term 10 and term 20 options with coverage amounts between $100,000 and $3,000,000. While it allows conversion to Group Level Term to Age 100 before age 65 without medical evidence, this conversion is not to permanent cash-value life insurance, limiting its usefulness for long-term estate planning.

Key limitations include:

  • ✘ No premium refunds for Flex term policies.
  • ✘ Coverage expires at age 75 — with no continuation unless converted.
  • ✘ Renewal rates increase significantly after the initial term, making long-term ownership more expensive.
  • ✘ Child rider available, but has limited value compared to standalone child coverage options offered by individual policies.

OMA Term Life Plus 75

The Term Life Plus 75 plan claims to offer lifelong protection but is heavily restricted in both structure and value. Coverage is available up to $1,000,000, and includes a limited benefit extension past age 75 — but with serious drawbacks.

  • ✘ Coverage automatically reduces by 10% per year starting at age 66, until only 10% remains by age 75. At age 75, the policy is paid up, but only 10% of the original coverage remains.
  • ✘ A premium refund is sometimes paid at year-end, but the amount has steadily declined: from 60% in 2015 to just 20% in 2021. As of 2022, OMA no longer publishes its refund rates, adding uncertainty to the plan’s long-term value.
  • ✘ Policies are not convertible to permanent life insurance, which is a major limitation for physicians planning long-term financial protection or tax-sheltered estate transfer.
Life Insurance for Physicians vs OMA Insurance

Top 5 Reasons Doctors Prefer Individual Over Group Life Insurance

In contrast, individually owned policies from insurers like RBC, Manulife, and Canada Life provide broader benefits for physicians. Let’s break down why more Ontario doctors are choosing individual life insurance over group plans like OMA:

  • Guaranteed level premiums for 10, 20, or 30 years, or to age 65 or 75. No premium increases mid-term.

  • ✓ Higher tax-free coverage limits up to $25 million, depending on the insurer.

  • ✓ Fully convertible to permanent life insurance (whole life or universal life) with no medical underwriting required.

  • ✓ No membership fees or obligations. The policy is individually owned and portable for life.

  • ✓ Customizable coverage with options like riders, child term insurance, critical illness bundling, etc.)

While OMA group life insurance can seem convenient early in your medical career, it often includes hidden drawbacks such as rigid terms, lower limits, and expiring benefits at age 75.

In contrast, private life insurance for physicians in Ontario offers lifelong coverage, portability, and premium predictability. That’s why thousands of doctors choose it to protect their income, estate, and family, long after OMA benefits expire.

Case Study: Dr. Mehta Chooses RBC Over OMA Life Insurance

OMA-Insurance-Case-Header

Dr. Mehta, a 39-year-old cardiologist practicing in Toronto, initially enrolled in both the OMA Term Life Plus 75 and their group disability insurance during residency because it seemed convenient and cost-effective.

Now with a growing family, mortgage, and increasing income, he decided to reassess his insurance strategy.

The Problem:

  • His OMA life insurance would reduce to only 10% of its value after age 75, with no option to convert to permanent coverage.
  • His disability coverage was age-banded, meaning premiums were about to jump by 40% when he turned 40.
  • He also realized that OMA’s disability definition reverts to “any occupation” after 24 months, reducing long-term claim protection.

The Switch:

Dr. Mehta consulted an independent advisor like us at Protect Your Wealth, and was able to find an option from RBC that suited his needs. He opted for:

  • RBC Term 20 Life Insurance:
    ✔ Locked-in premiums until age 59
    ✔ Fully convertible to whole life later — ideal for estate planning
    ✔ Higher coverage limit to match income and liabilities
  • RBC Professional Series Disability Insurance:
    ✔ True own-occupation definition for his entire career
    ✔ Guaranteed level premiums to age 65
    ✔ Includes inflation protection and recovery benefits

The Result:

Dr. Mehta now pays slightly more monthly than he did with OMA — but his contract terms are locked in, his coverage won’t change without his consent, and he has long-term flexibility to adjust or convert his plan as needed.

OMA Disability insurance

The OMA group disability insurance is partnered with Manulife. While OMA offers up to $25,000/month of group disability insurance, a closer look reveals that it lacks several key features that physicians should expect from a long-term income protection strategy. Despite offering both level and step-rate options, there are major structural limitations that make this group coverage less robust than individual disability insurance available on the open market.

OMA’s Group disability insurance has some quality deficiencies vs individual disability insurance such as:

  • ✘ Premiums Are Not Guaranteed: Even with the level rate option, OMA’s premiums are not contractually locked in. Manulife can change rates or policy provisions with just 30 days’ notice. In contrast, individual disability insurance policies are non-cancellable, meaning your rates, definitions, and coverage are guaranteed for the life of the policy.
  • ✘ Weaker Own-Occupation Definition: For residents, medical students, or international graduates, OMA’s plan does not offer true own-occupation protection — a critical shortfall for doctors in training or transitioning. Most individual policies maintain a specialty-specific own-occupation definition for the entire benefit period, ensuring physicians receive full benefits even if they can work in another field.
  • ✘ Termination at Age 70: Coverage ends at age 70 unless you opt for the 70+ extension, which only covers total disability for up to 12 months. Most individual policies offer to-age-65 or to-age-70 benefit periods without requiring extra extensions, and some even provide long-term care conversion options beyond age 70 — something OMA does not offer.
  • ✘ No Guaranteed Inflation Protection: OMA’s policy includes no minimum cost-of-living adjustment (COLA). With individual coverage, most plans guarantee a minimum 2% annual inflation adjustment, preserving your benefit’s purchasing power during long claims.
  • ✘ No Recovery Benefit: If you return to work part-time after a claim, OMA’s plan offers no recovery benefit. Individual disability insurance includes partial and residual disability coverage to ease your transition back into practice.
  • ✘ Limited Recurrent Disability Protection: OMA coverage waives the elimination period only if the disability recurs within 6 months. Individual policies typically offer a 12-month window, providing more generous protection against relapses.
  • ✘ Portability Tied to Membership: While OMA coverage is technically portable, you must maintain your OMA membership and pay annual fees to keep it active. With an individual policy, you own the coverage outright, regardless of membership or employment status.

If you were to shop options with a broker, individual disability policies like with RBC, Canada Life, and Manulife, 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. 

Why Individual Disability Insurance Is the Better Choice

Disability insurance should offer long-term income protection with contractual certainty. While OMA’s group coverage might work temporarily during residency, it often falls short as your career progresses and your income increases.

With individual disability insurance for physicians in Ontario, providers like RBC, Canada Life, and Humania offer key advantages:

  • Guaranteed level premiums that never increase

  • True own-occupation protection, even for medical specialists

  • Inflation protection, residual benefits, and recovery clauses

  • ✓ Contracts that cannot be changed or cancelled by the insurer

  • You fully own the policy — no group membership or extra fees

OMA Disability Insurance: What’s Missing Compared to Individual Coverage

Key differences in premium guarantees, inflation protection, and claim flexibility

OMAIndividual Disability
Premiums Not GuaranteedOMA can change rates at any time — not locked in.Guaranteed PremiumsNon-cancellable policy — premiums won’t change.
Weaker Own-Occupation CoverageEspecially limited for medical residents and trainees.True Own-Occupation DefinitionCovers your specialty — even if you work elsewhere.
Ends at Age 70No standard extension beyond this age.Coverage to 65 or 70Optional extensions available as you age.
No Inflation ProtectionNo COLA or future income adjustments.Inflation Adjustments Built In2%+ COLA ensures benefit keeps pace.
No Partial or Recovery BenefitsAll-or-nothing claim eligibility.Partial & Recovery BenefitsYou can claim even if partially disabled.
Short Recurrent Claim WindowOnly 6 months to reopen a related claim.Longer Recurrent Claim Period12 months to reopen disability claims.
Must Maintain OMA MembershipCoverage ends if membership lapses.No Membership RequirementCoverage continues even if not a member.
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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).

Case Study: Why Dr. Yu Chose Individual Disability Insurance Over OMA’s Group Plan

dr yu case study

Dr. Yu, a 37-year-old OB/GYN based in Ontario, originally enrolled in OMA’s group disability insurance during her residency. At the time, it was convenient and offered basic protection. However, after establishing a busy private practice and growing her income significantly, she began to reassess whether her coverage was truly sufficient.

The Problems with OMA’s Group Plan:

When she reviewed her existing OMA policy, Dr. Yu found several concerns:

  • Her OMA disability coverage would terminate at age 70, and the optional 70+ extension would only provide 12 months of total disability benefits.
  • Her supposedly “level” premium was not contractually guaranteed — meaning it could increase with just 30 days’ notice.
  • The policy offered no built-in inflation protection (COLA), potentially eroding the value of her benefits during a long claim.
  • Recovery benefits were not included, leaving her without financial support during a gradual return to work.
  • She learned that OMA’s own-occupation definition could revert to “any occupation” after 24 months, especially problematic for specialists like her.
  • The policy was also tied to OMA membership, meaning she would need to continue paying association dues indefinitely to maintain coverage.

The Individual Solution:

After speaking with an independent advisor, Dr. Yu opted to switch to a customized individual disability policy through RBC Insurance.

Her new policy included:

  • ✔ True own-occupation coverage to age 65 — specific to her OB/GYN role
  • ✔ Guaranteed level premiums — locked in until retirement
  • ✔ Built-in COLA to keep benefits aligned with inflation
  • ✔ Residual and recovery benefits to ease return-to-work transitions
  • ✔ Full portability — no professional membership or dues required

The Result:

Although her monthly premium increased slightly, Dr. Yu felt reassured knowing that:

  • Her policy can’t be changed or cancelled unilaterally
  • She has greater long-term protection and flexibility
  • She’s no longer at risk of rising premiums or reduced definitions during a critical claim period

“It was important for me to invest in coverage I could depend on, no matter how my career evolved. With my individual policy, I finally feel confident in my protection.”

OMA Critical Illness Insurance

OMA’s group critical illness coverage to Ontario physicians through its group plan with Manulife, including options under the Ontario Physician Insurance Program (OPIP). While it may appear convenient and partially subsidized, a deeper look reveals significant limitations when compared to individual critical illness policies from insurers such as RBC, Sun Life, and Canada Life. 

These limitations include:

  • Shorter Coverage Duration: OMA’s critical illness coverage terminates at age 70, which may be too early for many physicians still practicing or approaching retirement. By contrast, individual policies are available to age 75 or even for life, offering better long-term security.
  • Increasing Premiums Every 5 Years: OMA group rates increase every five years, meaning your cost rises significantly as you age — just when your risk of illness also increases. Individual plans from providers like RBC or Sun Life allow you to lock in level premiums for 10, 20, or 30 years, or even to age 75, giving you cost certainty and long-term savings.
  • ✘ No Return of Premium Option: Individual critical illness policies often include a return of premium feature — meaning if you never make a claim, you can receive some or all of your premiums back at retirement, after cancelling your policy, or death. OMA does not offer this benefit.
  • ✘ No Long-Term Care Conversion: One of the biggest disadvantages of OMA’s group CI coverage is that it cannot be converted to long-term care insurance. Individual policies, like RBC’s Critical Illness Recovery Plan, include a long-term care conversion option, providing valuable flexibility as your needs change with age.
  • ✘ Pre-Existing Condition Clauses and Restrictions: The OPIP coverage — which provides the first $50,000 of CI non-medically — includes a 24-month pre-existing condition exclusion, and only a portion is subsidized. Any remaining amount is voluntary and at the physician’s expense. Physicians who are healthy and qualify medically can often obtain better priced, higher-value coverage through individual underwriting.
  • ✘ Limited Maximum Coverage: OMA offers up to $250,000 of group critical illness coverage, depending on underwriting. Individual policies allow for much higher benefit limits — often up to $2 million, depending on financials and health status — and broader definitions of covered illnesses.
  • ✘ Group Structure = Less Control: OMA’s plan is owned and controlled by the association and administered by Manulife. Terms, premiums, and benefits can be changed on a group basis. Individual policies are contractually guaranteed, meaning your terms can never be changed without your consent.
  • ✘ Tied to OMA Membership: You must maintain your OMA membership and pay the additional annual membership fees to keep the policy active. Individual policies are fully portable and owned by you, independent of any professional association.

Why Individual Critical Illness Insurance Is a Better Choice for Physicians

Critical illness insurance is a vital component of a physician’s income and lifestyle protection strategy. But to be effective, it needs to be flexible, contractually guaranteed, and built to last through retirement.

Individual CI policies from insurers like RBC, Sun Life, and Canada Life offer:

  • ✔ Level premiums that never increase
  • ✔ Coverage to age 75 or lifetime
  • ✔ Return of premium and long-term care conversion options
  • ✔ Higher benefit amounts
  • ✔ Stronger contract guarantees — cannot be cancelled or altered
  • ✔ More favorable definitions and broader illness coverage
Comparison table between OMA Insurance Vs Individual Insurance Policies

In fact, based on third-party comparisons:

A 40-year-old physician could save over $22,000 in premiums by age 70 with an RBC Critical Illness Recovery Plan versus OMA’s CI coverage — all while receiving stronger benefits and longer-lasting protection.

OMA’s critical illness insurance may offer a subsidized starter plan, but it falls short in coverage length, pricing stability, benefit flexibility, and overall value. For physicians looking for meaningful protection through their working years and beyond, individual critical illness coverage offers significantly stronger long-term value and puts the control back in your hands.

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. 

Comparison of OMA Critical Illness Insurance vs Individual Policies


Comparison of OMA Critical Illness Insurance vs Individual Policies
OMA Critical Illness InsuranceIndividual Policies
Expires at 70 Limited coverage durationCoverage up to age 75 or lifetime Extended or lifetime coverage options
Rates increase every 5 years Premiums not fixedLevel premiums Premiums remain the same
No return of premium option No refund for unused benefitsReturn of premium available Premiums refunded if not claimed
No long-term care conversion No future care optionsLong-term care conversion available Can convert policy for future needs
Max coverage of $250,000 Limited benefit amountLarger benefit amounts available Higher coverage limits offered
Tied to OMA membership Not transferable if leaving OMAFully portable Stays with you regardless of affiliation

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Underwriting, Portability, and Long-Term Flexibility

When comparing OMA group insurance with private options, the differences in underwriting, portability, and contract guarantees are critical. This is especially true for physicians with long-term financial plans.

Medical Underwriting: One-Time vs Ongoing Risk

OMA insurance typically offers simplified or no medical underwriting during specific enrolment windows. This makes it easy to join early but often includes trade-offs such as lower maximum benefits, non-customized terms, and higher renewal risks.

Private insurance policies for Ontario doctors use full medical underwriting at the beginning. While more involved, this results in locked-in rates and personalized terms that remain unchanged for the life of the policy.

  • OMA: Basic group underwriting with limited risk pricing
  • Private: Comprehensive underwriting completed once with no re-qualification required

Portability: Can You Take It With You?

Your insurance needs change as your career evolves, from residency to full-time practice, or from Ontario to another province. Group plans like OMA often tie coverage to membership status or regional eligibility.

Individual insurance offers total portability:

  • No impact if you change employers or work settings
  • Coverage continues across provincial lines
  • Ideal for specialists, locums, and physicians planning semi-retirement

Contract Stability: Group Risk vs Policy Guarantees

OMA plans can be altered, repriced, or cancelled by the provider or association. Private insurance is non-cancellable by the insurer as long as premiums are paid, offering true peace of mind.

Why It Matters for Ontario Doctors

  • You can secure better pricing when you’re young and healthy
  • Your policy terms remain consistent regardless of group changes
  • Portability ensures your coverage stays active during career transitions

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

Over the past 10 years the cost for OMA insurance has increased. With OMA Group disability insurance, there used to be a refund at the end of the year. In 2021, OMA disability insurance rates increased.

OMA insurance can cover basic needs, but is likely not enough for your situation. OMA insurance is also often not very cost-effective, and you’d be able to find cheaper policies with higher coverage by working with a broker.

OMA’s claims were previously handled by Sun Life Assurance Company of Canada, a prominent and well recognized life insurance provider in Canada, but Sun Life had sold and exited its creditor and affinity business to Canadian Premier Life Insurance Company on Feb 1st, 2023. OMA insurance products fell under the affinity business, but was not notified of this transaction. In September 2023, OMA transitioned to Manulife as their provider. Members of OMA insurance can now sign up on the Manulife portal to view and access their Health & Dental, Life and Living Benefits policies.

OMA Insurance is an insurance distribution agency – they provide life, critical, and disability, health and dental, and travel insurance options for physician members in Ontario. They are a wholly owned subsidiary of the Ontario Medical Association.

No, it is not mandatory to purchase your insurance with OMA if you are an OMA member. As a physician in Ontario, you may already be enrolled as a member of OMA, but their insurance offerings are not your only option for insurance. You are free to shop elsewhere for your needs.

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, and 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.

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