IMPORTANT NOTICE ABOUT INSURANCE PLANS SPONSORED BY YOUR PROFESSIONAL ASSOCIATION

When you purchase an insurance policy, it is also important to consider the type of coverage you are getting.  Generally speaking, in Canada, healthcare professionals are offered insurance plans by their professional association or by brokers who are selling individual policies that cannot be cancelled by insurance companies.

Group insurance plan sponsored by your professional association

• Your plan can be canceled by the insurance company or by your professional association.

• Guaranteed conversion to an individual policy is usually offered for a guaranteed renewable policy. While conversion to a guaranteed renewable policy is better than no conversion rights, it may not be as good as it appears to be on the surface.

• A change of occupation or termination of association membership will usually result in termination of coverage.

• Premiums are not guaranteed and can be increased at the insurance company’s discretion.  Rates that increase every 5 or 10 years may prove to be less competitive when you reach a certain age..  In fact, if the total projected cost is calculated to age 65, the result is that frequently it is more expensive than individual coverage.

• Service is usually provided by mail or an association employee who is not an insurance expert.

• Benefits can usually be reduced at any time.

Individual Non-Cancelable Plan

• The plan cannot be canceled or modified by the insurer
• Plan is portable worldwide
• Premiums are guaranteed and leveled to age 65
• Service is provided by an insurance professional
• Underwriting is done at the time of application and the benefits are guaranteed

                                                                                                                                
Are you counting on the group disability insurance offered through your professional association?
                                                                                                                                   
Because it’s association-sponsored, that does not necessarily mean that it’s the best plan on the market.  Your plan may not be all you think it is.  It might, for example, ask you for financial documentation to prove your income at the time of claim.  If you do not earn enough income to justify your insurance benefit, the insurer may reserve the right to reduce your claim benefits.  This type of clause is not found in an individual non-cancelable contract.

In addition, a significant advantage of an individual insurance plan is that it cannot be reduced or terminated if you leave the association.  In today’s mobile society, an occupation change or relocation to another country is commonplace.  In contrast, your association coverage may not be portable to another country. 

With personal non-cancelable disability insurance, no benefits will be changed as long as you pay the premium

Are there any special offers for residents and early-career health care professionals?

Yes, some insurance companies understand you particular situation and will increase the insurance limits that are available. You may have access to certain programs that do not require you to provide the insurance company with medical proof.

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