In December, Sun Life announced they will no longer be the insurance company dealing with OMA disability insurance. According to the Sun Life announcement, OMA Insurance will be serviced by Canadian Premier Life Insurance Company with the transaction expected to close in early 2023.
Who is Canadian Premium Life Insurance Company?
According to their website, Canadian Premium Insurance Company insurers over 2,000,000 Canadians, is an A rated insurance company and is an independent subsidiary of Securian Financial Group.
Who is Sun Life Insurance?
According to Sun Life annual 2020 report, Sun Life is the leader in the Canadian group benefits market. Sun Life provides coverage to over 5,000,000 employees and their dependents with more than $18 billion dollars in claims and benefits paid in 2020, over 1,25 trillion dollars in assets under management and are rated as AA by Standard And Poor’s, DBRS and A+ by AM Best.
Why did this change occur?
It would be unfair for us to speculate however, over the past 10 years the cost for OMA disability insurance has increased.
How much has the cost for OMA disability insurance increased?
In 2010, the OMA rebated 45% of the premium on group disability insurance. This rebate was reduced to 0% in 2017. In 2021, OMA disability insurance rates increased on average 22%.
| OMA INSURANCE ANNUAL PREMIUM REFUNDS | |||
| Life Ins. | Disability Insurance | Office overhead | |
| 2021 | 20% | +22% average increase | 20% |
| 2020 | 20% | 0% | 40% |
| 2018 | 58% | 0% | 40% |
| 2017 | 58% | 17% | 40% |
| 2016 | 60% | 17% | 40% |
| 2015 | 60% | 17% | 40% |
| 2014 | 56% | 34% | 40% |
| 2013 | 63% | 35% | 40% |
| 2012 | 63% | 35% | 45% |
| 2011 | 65% | 25% | 55% |
| 2010 | 65% | 45% rebate | 65% |
| Source: OMA Insurance | |||
Can the OMA increase the disability insurance rates again in the future?
YES.
What are the quality differences between individual and OMA group disability insurance?
o The current OMA group disability plan terminates at age 70, unless you opt for the 70+ extension. Individual insurance can be maintained until age 100.
o Individual insurance offers a minimum inflation protector (not available with OMA Insurance).
o Individual insurance offers a recovery benefit (not available with OMA Insurance).
o Individual insurance offers a 12-month protection in case of a reoccurring disability (not available with OMA Insurance)
o Individual insurance has a long-term care insurance conversion which provides lifetime coverage for home and facility care (not available with OMA Insurance)
o Individual insurance rates and policy provisions are locked in and guaranteed not to increase.
Can I get a discount if I want to replace my OMA Insurance?
YES up to 25%
NEXT STEPS
Should you wish to replace your OMA insurance or supplement your coverage call 416-222-1311 or email info@levinefinancialgroup.com
APPLY TO REPLACE YOUR OMA INSURANCE
Elliott Levine, MBA, CFP is the President of Levine Financial Group in Toronto
We Save Physicians Money on their Insurance
416-222-1311 I info@levinefinancialgroup.com