Who owns your disability insurance?
You may THINK you do but if you have Group Long Term Disability through your employer or if you hold it through your professional association (i.e. Ontario Medical Association, Canadian Dental Insurance Program, Canadian Bar Association), then you DO NOT own the coverage. You are in fact, a renter.
When you don't OWN the policy, you don't CONTROL the policy. This has a number of implications:
- The premiums can increase at any time. In fact, if you are with the OMA currently, you will have just received notification that your rates will be increasing. Rates increase when the individuals within the 'pool' of the association or employer plan get older and claims experience increases. The ability to increase rates means that eventually healthy individuals finally get "fed up" with the rate increases and leave the association/employer plan to acquire private coverage. Those that remain with dubious health (and who don't qualify for a private plan) continue to drive up the claims experience again and the cycle continues.
- The coverage definitions can change at any time. In order to make it more difficult to open the claim door, the insurer can add restrictions, or tighten up definitions…again without your control. As an aside, the definitions in Group/Association plans are typically more stringent in the first place versus private contracts.
- What you purchased in the past (through the professional association plan) may not be the same as when you actually need to claim on the policy…when it REALLY matters. This would result in another unmet expectation.
Your ABILITY TO EARN AN INCOME is your greatest ASSET. You need to protect this in the best way possible.
Only a private plan can accomplish this goal. Implementing a private plan gives you the guarantees that:
- Until age 65, your premiums will never change, EVER. No matter how many times you go on claim, no matter if you change into a riskier occupation, take up hazardous hobbies, or develop health issues. What you paid today, will be the same tomorrow.
- Your contract can never be cancelled by the insurer. Only you can cancel it!
- Your contract wording will never be changed to your detriment by the insurer.
- You will have far superior definitions in YOUR contract which makes it easier to open the claim door.
- What you purchased today will be the same many years from now so that your expectations are fully met at time of claim.
There are 2 ways to write an insurance contract. One is in favor of the insurance company and the other is in favor of the insured.
If the insurer can increase your premium, cancel your policy, or add restrictions, then this policy is NOT written in favor of the insured (you).
If the insurer cannot increase premium, cancel coverage or make restrictive changes, then the policy is written in favor of the insured.
Which would you rather have?
Our boutique firm has specialized in the area of Living Benefits for business owners and professionals since 2001. I would be happy to help you acquire the right kind of disability insurance protection.
In fact, in light of the OMA changes, one top tier insurer is extending a 25% lifetime discount to PRACTICING ONTARIO PHYSICIANS for disability insurance until September 10, 2021. There is an additional discount for life insurance 10% to this select cohort.
P.S. Did you know that you can access up to $8000 per month of disability insurance, $250,000 of critical illness insurance and $5 million of life insurance without labs (blood/urine) and over the phone/zoom?
Contact our office for details!
Martin Maretzki, CHS, CLU
