OMA INSURANCE – THE FACTS
Below are the facts on OMA Insurance offered through the Ontario Medical Association as of 2021
Facts on OMA Life insurance
The OMA offers group term to 75 life insurance and a flex term 10 / 20 life insurance plan through New York Life.
The OMA Insurance group term to 75 life insurance plan is term insurance where rates increase every 5 years, rates are subject to tax, the plan in not convertible to permanent coverage and at most ages it is expensive compared to individual coverage even after OMA refund. More important, coverage begins to decrease by 10% per year at age 65 (while the price remains the same!). At age 75, only 10% of the original coverage may be paid up.
Facts on OMA Disability insurance
In 2022, Sun Life sold the OMA disability insurance business to Canadian Premier which means Sun Life will no longer be the insurance company as of 2023. The impact to OMA rates and coverage is unknown.
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. With respect to the quality differences, this is where independent coverage really stands out. Below is a comparison to RBC insurance.
- The current OMA group disability plan terminates at age 70 unless you have opted for the 70+ extension. RBC coverage can be maintained to age 100.
- RBC offers a minimum inflation protector (not available with OMA Insurance),
- RBC offers a recovery benefit (not available with OMA Insurance),
- RBC offers 12-months protection in case of a reoccurring disability (not available with OMA Insurance)
- RBC offers a long-term care insurance conversion which provides lifetime coverage for home and facility care (OMA offers Encore 65 which provides a maximum of 3 years of home care). 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 guaranteed.
- Most important, with RBC you own and control your plan. You never have to worry that you will lose your coverage and rates are guaranteed.
Facts on OMA Critical illness insurance
OMA Group Critical Illness Insurance is with Sun Life and provides you with a tax-free lump sum benefit of up to $250,000 after 30 days of surviving a diagnosis of one of 25 illnesses. The OMA also offers up to $100,000 of critical illness insurance through its OPIP plan. with no medical required.
What about the OMA Annual Premium Refund?
For the past 10 years OMA Insurance has been advertising its non for profit status and the Annual Premium refund on various insurance products. The OMA provides an annual premium refund on OMA Group term 75 life insurance, group disability and office overhead insurance. Refunds are paid in December of each year. There is no refund on OMA critical illness insurance.
In December 2018, OMA Insurance announced the OMA Group term to 75 life insurance refund had dropped from 58% (2017) to 40% (2018) and OMA Insurance eliminated the refund altogether on the OMA group disability insurance.
Since 2009, the annual premium refunds have been slashed …
- 75% drop on Group term life 75 insurance.
- 87.5% drop on Group professional overhead expense insurance.
- Reduced the refund on group disability insurance to 0%.
In June 2021, OMA insurance announced an increase on their group disability insurance rates by an average of 22%.
Analysis of OMA Annual Premium Refunds
Below is a chart showing the OMA insurance refunds and rate increase in 2022 by OMA insurance product line.
|Year||Life Ins||Disability Ins||Office Overhead Ins|
|2021||20%||+22% rate increase||20%|
Disclaimer: Levine Financial Group are independent insurance brokers. We are not part of the OMA and do not offer OMA Insurance. Source OMA Insurance Jan 2022