OMA Insurance vs Private Life Insurance for Canadian Physicians

Sample Scenario: Dr. Mehta Chooses RBC Over OMA Life Insurance

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 provide long-term financial protection with rock-solid guarantees. Group coverage like OMA’s may work as a temporary solution during residency, but as your income grows and your financial responsibilities increase, individual coverage becomes essential.

With individual disability insurance from providers like RBC, Canada Life, and Humania, you get:

• ✅ Guaranteed level premiums that never increase
• ✅ True own-occupation protection, even for specialists
• ✅ Inflation protection, residual benefits, and recovery support
• ✅ Contracts that cannot be changed or cancelled by the insurer
• ✅ Ownership of your policy — no membership and additional fees required

OMA’s disability insurance might be a convenient starter plan, but it lacks the depth, flexibility, and contract guarantees required to properly protect a physician’s income long-term. If you’re a doctor in Ontario earning a growing income and planning for your future, individual disability coverage is a significantly stronger, more secure investment.

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

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. 

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, 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.