O.M.A. stands for the Ontario Medical Association and they've been offering life insurance since 1956, underwritten by New York Life. These plans fall into two categories, a Term Plus 75 plan, which is available to members under the age of 60, and the Term Life plan, which is available to members 60 to 69.

The Term Life Plus 75 plan has two unique features: a portion of the coverage (10%) is paid up for life by the age 75 and the coverage automatically increases by 10% a year, for up to 10 years. Best of all, no medical test is needed to qualify for the 10% increase.

On the other hand, the Term Life plan terminates at age 75 and there is no paid-up value. The premiums in both plans increase in five-year increments and the premiums are not guaranteed, as it is part of a group policy. To find out why this is the case, read Group vs. Individual Insurance.  

Premiums are significantly higher when stacked against individual policies, but the gap is narrowed once you factor in the O.M.A premium refunds. Though not guaranteed, O.M.A premium refunds are given when premiums exceed claims and expenses for the group.

Premium refunds on the O.M.A plan have averaged more than 50% over the last ten policy years. Coverage is available in $100,000 blocks for the insured, and/or the insured's spouse, up to $1,000,000 and is subject to a medical.

Since the O.M.A plan falls under group policy, premiums are subject to sales tax and premiums on indvidual policies are not. Recent non-smokers will also have a tough time qualifying for O.M.A's coverage because you have to be tobacco-free for 24 months. With most indvidual life policies, you only have to be tobacco-free for 12 months.

The O.M.A plans also don't offer preferred rates for those in excellent health and with an excellent family health history, but indvidual policies do, generally in the amount of $250,000 or higher.

With that in mind, let's see how the O.M.A policies stack up against individual policies. The following is a snapshot comparison for $500,000 of coverage for a 45-year-old, male non-smoker:

$500,000 Term Life Plus plan: $127.35/month*

*(Includes sales tax and doesn't include the premium refund, which has been 50% over the last 10 years)

$500,000 Equitable Life Term 10:                   $53.55/month

$500,000 Canada Life Term 10:                      $54.45/month

$500,000 Manulife Term 10:                            $54.66/month

$500,000 BMO and RBC Insurance Term 10:  $53.90/month

Even with the 50% premium refund, Individual Term 10 coverage is significantly less than the O.M.A. policy. Premiums are fixed for a longer period of time and the coverage is fully guaranteed. It is also convertable to a permanent plan without a medical.