OMA Insurance Facts

OMA Insurance

Below are some details on OMA Insurance offered through the Ontario Medical Association as of 2022

The OMA offers two life insurance options. A group term to 75 life insurance and a flex term 10 / 20 life insurance plan.

OMA group term life insurance
As of 2022, 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.

As of September, 2023, rates are not being published. 

OMA group 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. As of 2021, OMA disability insurance, rates were 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 an individual plan with RBC insurance as of 2022.

  • 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.

As of September 2023, OMA group disability insurance is administered by Manulife. Rates are either step rates (that change based on your age) or a level rate.

We are happy to run a cost and quality comparison for you.

OMA critical illness insurance
As of 2023, OMA Group Critical Illness Insurance is administered by Manulife (previously 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.

With RBC or even Manulife directly, we can get you up to $2,000,000 of critical illness insurance.

What about the OMA Annual Premium Refund?
As of 2022, the OMA provided 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.

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
2022 20% 0% 20%
2021 20% +22% rate increase 20%
2020 20% 0% 40%
2018 58% 0% 40%
2017 58% 17% 40%

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