O.M.A Group Insurance: Why Doctors Should Consider an Individual Life Insurance Policy
Medical practitioners, physicians and students of Ontario are offered a specialized group life insurance plan offered by the Ontario Medical Association but many are not aware that once the applicant passes the age of 65, the amount of coverage they are entitled to plummets while their premium steadily increase with every year. Individual Toronto Life Insurance would have been a much better solution to this problem. The OMA justifies this decreasing coverage by saying that “coverage automatically declines at age 66 and levels off at age 74, corresponding to your decreasing needs.” However, according to Statistics Canada reports, the risk of men and women to contract a heart disease, stroke, cancer and other life threatening diseases increases considerably after the age of 65.
This puts medical physicians under considerable risk with very little returns. The maximum amount of coverage that an applicant can get with OMA insurance is $1 million while companies like RBC, Canada Life as well as others offer up to $2 million in coverage. This means that not only can it not offer the maximum amount of coverage to protect yourself and your spouse, your coverage decreases while your premiums steadily increase, and unlike permanent insurance policies there is no cash value to the product. Also unlike a permanent policy, when the OMA policy ends and you reach the ripe age of 75, you only have 10% of your policy paid up in full as opposed to 100% of it guaranteed.
The product many doctors of Ontario have already started taking advantage of, is the 20 pay product. A 20 pay life insurance policy is a sort of permanent life insurance policy where the applicant can pay fixed premiums for 20 years and following those 20 years the applicant has the full coverage of the policy for the rest of your life without ever having to pay a premium again. Doctors of Ontario have chosen this product because the premiums are guaranteed, their coverage is guaranteed, and the value is guaranteed.
OMA Term 75 for a 45-year old non-smoking male with a million dollar policy:
OMA Term 75 monthly premiums steadily increase:
Age 45-49 – $254.70
Age 50-54 – $423.00
Age 55-59- $674.10
Age 60-74 – $1,030.75
While the coverage decreases…..
Under 66 – $1,000,000
Age 69 – $450,000
Age 75 – $100,000
Whole Life 20 Pay:
Age 45 – $1115
Age 75 – no change
Coverage after 75 – 1,000,000
As you can see although the premiums are higher the product is guaranteed, the premiums are level and your policy is paid in full as opposed to a mere 10%. Doctors across Ontario have invested in this product as well as the Whole Life 15 Pay product because they have realized the importance of investing in a product that’s guaranteed and allows them to be entitled to the coverage they deserve when they need it most. Invest in a product that will give you peace of mind without fluctuations in price or compromises on coverage and protection for you and your spouse.
For more information on OMA life insurance plans and any others or if you would like to receive free quotes contact Jack Bendahan, senior life insurance broker at 416-995-8705 or email him at jack@lifeman.ca
