OMA Insurance: Disability insurance

Facts on OMA Disability Insurance

Facts on OMA Group Disability Insurance: 
The current OMA group disability insurance offers up to $25,000 per month of group disability insurance through Sun Life. Unlike the current OMA group disability plan which terminates at age 70, the RBC Professional Series® Disability Insurance policy can be maintained to age 100. Should you need to make a claim, RBC offers a minimum inflation protector (not available with OMA Insurance), a recovery benefit (not available with OMA Insurance), 12-months protection in case of a reoccurring disability (not available with OMA Insurance) and a long-term care insurance conversion plan that can be paid off in as little as 10 years. In some cases, the RBC Insurance disability may be more expensive than the OMA, but RBC policy provisions and long-term care conversion option are more extensive and guaranteed.

Cost:
With OMA disability insurance, rates can be age banded (<35, 35-44,45-54 and 55-69) which increase over time or on a level rate. Level rates are not guaranteed and may change overtime depending on the insurance costs of the group.

Policy provisions:
Below are the highlighted differences in policy provisions between an individual policy and the group OMA disability plan.

  • Control – Under the OMA group disability plan, the insurer (Sun Life) controls your insurance. If you leave the OMA, you need to pay OMA fees to maintain your insurance. An individual plan you own and control.

  • Partial Disability – With the OMA there is no minimum payment if you are partially disabled. Individual coverage has a 50% minimum for 6 months.

  • Portability – If you leave Ontario, you need to pay OMA fees to keep your insurance. Individual coverage is portable.

  • Recovery from disability. When you return to work after a total or residual disability, there is no recovery benefit from the OMA to help with a loss of income. An individual plan offers a minimum of 4 months based on the percentage income lost.

  • Inflation protector – The OMA has no minimum inflation rider. Individual coverage offers a minimum 2%.

  • Long term care conversion. At age 65, OMA disability insurance can be used for up to 36 months of home care, home renovation or a one‐time payment for a fracture. There is no additional premium required. A portion of total premiums are allocated each year towards Encore65 benefits. As a comparison, your RBC disability policy can covert to up to $6,000 per month of home and facility care coverage with lifetime benefits (to age 100).
  • Discount/Rebate. The OMA offers an annual premium refund on the first $10,000 per month of coverage. In 2018, this refund was 0%. An individual plan offers a discount of up to 25% on up to $30,000 per month of coverage.

Source: OMA Insurance

If you want to have the best quality coverage, an individual plan gives you ownership and control over your insurance. Think about this, you went to school for the better part of 15 years, why would you leave your insurance in the hands of someone else. We recommend you own and control your policy and an individual plan is the best route.

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Disclaimer: Levine Financial Group are independent insurance brokers. We are not part of the OMA and do not offer OMA Insurance.