For Attending Staff: Oma Vs Rbc Disability Insurance

[Wilhelm]

I am currently deciding between these two providers of insurance. Both have comparable products. Has anyone here selected one over the other and why? Are there any concerning deficiencies with either product? Thanks.

[5th time the charm]

1. Get while young and if RBC may offer you a guaranteed rate with no increases based on age and future guaranteed insurability without evidence of health that may be the way to go if it works for your budget. Own occupation also a MUST

2. On the other hand, OMA insurance also has a return of your premium offer every year which is based on claims history (not your history but the group),  they have similar own occupation and guaranteed insurability rider as your income increases you get to increase your amount but there are levels for age and go up every 5 years I think which may be different than RBC's offering.

[Wilhelm]

I've noticed that with RBC, the "own occupation" rider they have is not a true own occupation rider in that any income made from another source during time of claim is "offset" against your claim amount. You have to pay extra for "enhanced own occupation" coverage, which does not have the offset. OMA is automatically an "enhanced own occupation" insurance.

 

OMA is cheaper year by year in the beginning. I'm in my early 30s now. You mention that it goes up every 5 years. So you mean that in five years time the amount I pay will be more, even though I bought the insurance at this early age? With that in mind does the potential refund offset the amount by which the insurance increases enough to make it more affordable than RBC?

 

RBC is good because it is "noncancellable, guaranteed renewable" in that only non-payment or client cancellation can effectively void it. OMA has a group plan, which can be changed by the insurer and renegotiated by the OMA. So as long as a change happens that affects all holders of the plan, the change can happen, good or bad. It isn't a locked in contract. They have a good track record now but who knows what the future holds. I am really sketchy on taking insurance that isn't noncancellable, guaranteed renewable but the rate is better and there is a yearly % refund.

 

If you don't mind me asking, which way did you go with it if you have?

[5th time the charm]

i have OMA- 90 day waiting period

 

I purchased it back in the day when there was a program after residency you could apply for

 

I don't know that I carefully reviewed other plans but the OMA website says theirs is non-cancellable? 

 

there appears to be both a step rate- under 35, 35, 45, 55 and an opportunity to convert to a steady rate.

 

Have you contacted an insurance rep with the OMA to clarify the differences?

 

 I like getting the refund but I would enquire with the rep if comparing the programs makes one or the other more preferable. 

[fugacity]

Okay I spoke at lengths about this with my insurance providers, and this is what I got out of our meetings.

 

BCMA (BC version of OMA) offers a similar insurance plan that is cheaper for students.  I plan to be on this plan until I graduate.

 

In comparing the xMA vs. RBC, the advantage of xMA is that it is a lot cheaper in the beginning, as it is a group plan.  This means physicians who are older are paying for students and trainees.  In the long run, the xMA plan will cost you more, if the inflation rate remains relatively normal.  The bad part is that group plans change policies, and disability insurance is something where you don't want the policy to change since you will likely be enrolled in it until you retire.

 

The RBC insurance also increases over time, but that is based on age and amount of coverage (I believe).  I am under the impression that the terms are not negotiable and will not change over the life of the contract.  Certainly it costs more when we are students, but students generally take out lower amounts of coverage, so the absolute difference between RBC and xMA is maybe $100/yr or so.   At the time you want to increase your coverage (married, kids, more dependents), I believe the RBC rate will be lower so there is benefit in the long run. 

 

If disability insurance premiums were tax deductible, I would definitely go with xMA.  However, it is out of pocket, and the cheaper run in the long term makes sense to me. 

 

Best plan is to roll with xMA for as long as you can, before full health checks are mandatory for enrollment with RBC.  I believe this date is just before graduation, but don't take my word for it.