OMA Insurance: disability insurance provides group disability coverage through the Ontario Medical Assocation. Disability insurance is income protection in case of sickness or injury. There are several cost and quality differences between the OMA Insurance disability plan and an individual disability plan.
With respect to rates, OMA rates increase at age 35, 45 and 55; individual rates are locked in and fully guaranteed. More important than the numbers are the irrefutable quality differences as follows:
Below are the highlighted differences in quality between an individual and the group OMA disability plans.
- Ownership – Under the OMA group disability plan, the insurer (Sun life) owns and controls 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. The OMA long term care insurance through Sun life takes 25 years to pay off where as the RBC plan takes only 20 years and is less expensive.
- Discount. The OMA offers a rebate only on the first $10,000 per month of coverage. An individual plan offers a discount of up to 25% on up to $30,000 per month of coverage.
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.