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Disability Insurance For Medical Students (The RBC Medical Student Offer)

Category 1: Cover needs

You don’t need scary statistics to know the absolute necessity of getting suitable disability insurance if you qualify (general information).

Your ability to earn an income is usually your most valuable financial asset. When you can’t work due to an illness or injury, what happens to your income? What happens to your personal expenses and business overhead expenses?

Your best strategy is to get protection while you’re a medical student, resident or fellow.

You won’t qualify for much coverage today — which reduces your costs. The big advantage is that once you’re approved, you have the option to add coverage as your income increases — without medical underwriting. You provide proof of your income and pay for the increase in coverage based on your age at the time of election. That’s easy to afford because you have more income.

Disability insurance is difficult to get because:

  • Very few insurers offer personal coverage (Manulife exited the market on Sep 30, 2022)
  • Very few advisors have the specialized training
  • Misconceptions prevail — especially regarding group long-term disability insurance from the Ontario Medical Association (see the FAQ about OMA Insurance later on this page)

Although we’re independent and offer products from different insurers, we recommend the Medical Student Offer from RBC Insurance.

The Medical Student Offer (MSO) from RBC Insurance

RBC Insurance is by far the largest provider of disability insurance to doctors and other Canadians. With the Professional Series, you get solid guarantees. A special offer gives you even more.

Reminder: Since insurance offers and products change, we tailor options to your unique situation.

1. Introduction to the Medical Student Offer

2. Overview Of the Medical Student Offer

3. Why act now to take advantage of the Medical Student Offer?

Standard features in the RBC Professional Series disability insurance

You get many features built into the RBC Professional Series:

  • Tax-free benefits: receive tax-free monthly benefits up to age 65 after a 90-day elimination period.
  • Guaranteed premium rates to age 65: your premium rates will not increase as you get older or if RBC has more claims than expected.
  • Non-cancellable: as long as you pay your premiums on time, RBC can’t change your policy.
  • Coverage beyond age 65: you have the contractual right to continue your coverage regardless of your health. The benefit period is reduced.
  • Conversion to long-term care insurance: you have the contractual right to elect lifetime income regardless of your health. You receive tax-free income if you have a cognitive impairment or are unable to perform two or more Activities of Daily Living.
  • Portable: you can keep your coverage wherever you are on earth.
  • Premiums waived during disability: After 90 days of disability, your premiums are waived while you remain disabled. You also receive a refund of premiums paid during those 90 days.
  • 10-day free look: you can cancel your coverage within 10 days of receiving the policy contract and receive a full refund

Recommended options for your disability insurance

  • Future Income Option: as your income increases, you can increase your coverage with proof of income regardless of your health. The maximum tax-free benefit is $25,000 per month.
  • Cost of Living Allowance: during a claim, your benefits increase by 2-10% annually based on the Consumer Price Index (CPI).
  • Disability In Your Occupation: receive benefits if you can’t do your regular work even if you can do other work (without this rider, you might not receive benefits in this scenario).

The special RBC Medical Student Offer (MSO)

RBC has a special offer which is only available to medical students (including residents, fellows, and specialists):

  • Simplified application: you skip the longer, regular paperwork.
  • Financial underwriting waived: you don’t need to provide proof of your current income or have your coverage limited by your current income.
  • Simplified medical underwriting: you do not need a medical examination or to provide body fluids.
  • Coverage for HIV, hepatitis B, and hepatitis C
  • Discounts: save 25% on your premium and any future increases purchased with the optional Future Income Option (FIO) rider.
  • Premium holiday: have your initial premiums waived:
    • Medical students: 12 months
    • Residents and fellows: 5 months

The maximum tax-free benefit depends on whether you are a medical student, resident, fellow, specialist or general practitioner in your first year of practice.

Frequently Asked Questions (FAQ) about disability insurance

If your question isn’t answered here, arrange a chat.

Who qualifies for the RBC Medical Student Offer?

This offer is for Canadian citizens or permanent residents who studied at an Ontario university. It is subject to change without notice. The content is simplified here. You’ll find the official details in RBC-created content. If you have questions, please ask.

What if I’m not listed?

If you’re not listed, don’t fret. You may still qualify for conventional disability insurance. Please arrange a chat.

You may be eligible for the discounts and provisions of the Student Savings Program (ask for details).

What About OMA Insurance?

You could get insurance from the Ontario Medical Association. While you’d help them, are you doing the best for yourself? You might find drawbacks if you value:

  • Independent advice
  • Guarantees

Here are questions to ask about OMA long term disability insurance:

  1. Are your premium rates fully guaranteed? If not, why not? If not, are there any limits on premium increases?
  2. Are your definitions fully guaranteed? If not, why not?
  3. Can your coverage be cancelled? If so, under what conditions (besides nonpayment of premiums)?
  4. Do you receive a policy contract with written guarantees? If you only get a group certificate, the contract can be changed without your input or consent.
  5. If you change professions, what happens to your coverage?
  6. How does the OMA plan compare with the plans for doctors in Alberta and British Columbia?
  7. Does the OMA receive compensation, allowances or other incentives from the insurer?
  8. What are the main reasons that OMA members decline or cancel OMA long term disability insurance?
  9. What is the premium tax rate?

Tip: ask if the advisor personally has disability insurance.

Can I buy disability insurance on price?

Disability insurance is the most complex form of health insurance. You can’t buy on price — highest or lowest. Service and claims adjudication are essential considerations, but how can you decide? The contract definitions differ among companies.

Can I apply for disability insurance now?

To make sure you understand your options and get answers to your questions, we meet with you online at a date/time you select. Afterwards, if you decide that personal disability is right for you, we will complete your insurance application together and monitor the progress.

Tags: communities, disability insurance, disability risk, medical students

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