AMA Disability Insurance Review 2024

AMA disability insurance plans are designed to safeguard physicians in Alberta from financial uncertainties stemming from illness or injury.

Powered by Manulife, AMA's coverage ensures a monthly income replacement for living expenses during incapacitation, with unique advantages like first-in-line payment and portability.

So let's take you through everything you need to know about AMA disability insurance: Coverage, pros, cons, and costs, to check if it works for you. You can also use our free comparator to explore Canada's best disability insurance plans, compare the policies, and get free personalized quotes.

Our 2024 review of AMA disability insurance

The Alberta Medical Association (AMA) offers disability insurance plans — also known as AMA disability insurance for physicians — to help physicians in Alberta financially secure themselves in case of an illness or injury that prevents them from working.

Offered through Manulife, AMA’s disability insurance provides a monthly income replacement to cover living expenses while you're unable to work. Also, AMA coverage pays first and other disability plans supplement it up to certain limits. (Note that Manulife offers Manulife disability insurance that offers coverage to everyone irrespective of their profession).

The AMA disability insurance can be a good option for physicians looking for basic, affordable coverage. However, its limitations in benefit caps, renewal guarantees, and features might not be ideal for long-term financial security. 

Compare it with other providers and consider your individual needs and risk tolerance before making a decision. You can use our free comparison tool below to explore the best disability insurance plans in Canada and get free personalized quotes right here.

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What are the pros and cons of AMA disability insurance?

Pros of AMA disability insurance

• Generally cheaper than other physician disability plans
• Guaranteed acceptance within the first six months of practice
• Covers your income first, maximizing your benefits
• Residents can smoothly switch from PARA to AMA plans
• True own-specialty definition

Cons of AMA disability insurance

• Maximum benefits are lower compared to top competitors
• Premiums can increase significantly with age
• Pre-existing condition limitations
• Not the best long-term disability insurance solution
• Only for physicians 

What is the cost of AMA disability insurance?

AMA disability insurance rates can vary depending on several factors, including:

1. Age: Premiums generally increase with age, as the risk of disability increases.
2. Health: Pre-existing conditions or health risks may affect your eligibility and premium rates.
3. Benefit amount: The higher the monthly income benefit you choose, the higher your premium will be.
4. Plan options: Different plan options, such as own-specialty definitions or additional riders, can impact your costs.
5. Discounts: AMA members and residents are eligible for discounted rates.

Here’s a sample quote for a 27-year-old male earning $60,000 annually.

The individual is a non-smoker and chose an elimination period of 90 days along with all the optional riders we mentioned above — with a retirement protection amount of $1,000 per month.

Factor	Cost
Base premium	$250.95
Own Occupation rider	$37.64
COLA rider	$37.64
GIB rider	$87.00
Retirement Protection rider ($1,000/month benefit)	$142.00
Lifetime Accident Total Disability rider	$12.55
Annual premium	$567.78
Monthly premium	$47.32

What is the coverage limit for AMA disability insurance? 

AMA disability insurance is a good choice for you if:

• Are having a mortgage to meet
• Your family relies on your income
• You have elderly parents financially dependent on you
• You are a single parent 

All of these underscore the importance of securing your financial stability. Without a safety net, you might need to dip into your savings for daily expenses, potentially halting contributions to retirement or your children's education funds.

Over the past 20 years, members received a premium credit on the Disability Insurance plan 17 times.

Purchasing through AMA provides numerous advantages, such as competitive group rates, globally portable coverage through ADIUM (a wholly-owned insurance agency of AMA), and expert advice without additional costs.

• When it comes to coverage, the benefit amount, ranging from $500 to $25,000, is linked to your income.
• You also have the flexibility to choose the elimination period — 30, 60, 90, or 120 days — that aligns with your needs, helping control costs while ensuring you have the coverage you require.

To know more about AMA's disability coverage, download this brochure:

Does AMA disability insurance offer any additional benefits?

Yes, you can get several additional benefits from AMA at no extra cost:

For instance, you get guaranteed acceptance.

• The initial $1,500 of monthly disability coverage is issued without requiring medical evidence of insurability.
• It must be your first six months of full-time practice in Alberta, and you should be under the age of 65.

However, there is a pre-existing condition limitation that applies for the first 24 months, meaning no claims related to pre-existing conditions will be paid during this period. If you seek coverage beyond this monthly benefit, you will need to submit medical evidence of insurability.

Here are some other additional benefits that you get through AMA:

Waiver of Premium and Survivor Benefit

No premiums are required if you are disabled for 90 consecutive days or more. As for the Survivor Benefit, you get an additional three-month payment, provided to your beneficiary or estate if you pass away while disabled.

Transplant Donor or Cosmetic Surgery Coverage

Coverage is available if you are disabled due to a transplant donor or cosmetic surgery. To be eligible, your coverage must have been in force for at least six months, the elimination period must be completed, and you must have been continuously totally disabled for at least 30 days.

Recurrent Disability Benefit

There is no elimination period if your disability returns within six months. If you return to work but experience a subsequent period of total or residual disability within six months due to the same cause, your benefits will resume without having to satisfy another elimination period.

There’s more! You also get HIV Hepatitis B/C Positive Benefit. If you test positive for HIV or become a carrier of Hepatitis B or C virus, you may qualify for benefits even if you are not disabled and are asymptomatic.

You must compare AMA with other plans before zeroing in on one. Use our free comparator below to compare multiple disability insurance plans and get individual quotes in no time right here.

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Does AMA offer any optional riders?

Absolutely yes! Just like additional benefits, AMA offers several optional riders that you can buy with its disability insurance. Here’s a quick overview of its optional riders:

Guaranteed Insurability Benefit (GIB)

• Ensures you can secure coverage later, irrespective of changes to your health.
• No proof of good health is required; however, proof of income is necessary.

If you are 55 or under and possess sufficient income, you can purchase up to $2,500 of additional coverage at each option period, in $100 increments, subject to the maximum limit.

Cost of Living Adjustment (COLA)

• Keeps your coverage in line with the cost of living, increasing your monthly benefit based on the National Consumer Price Index (with a maximum of 6%).
• This applies if you've been disabled for 12 consecutive months and continues each year you remain disabled until the age of 65.

Own Occupation

• Safeguards your earning power when disabled.
• Considered disabled from your regular occupation, you are entitled to disability benefits even if you return to work in a different capacity or switch to another field.
• Benefits cease upon reaching the age of 65.

Retirement Protection

• Preserve your retirement plan by making monthly contributions to an investment account during periods of total disability.
• Commences after 90 consecutive days of total disability and persists for each month you remain disabled, up to age 65.
• Monthly benefit amounts vary based on annual earned income net of expenses.

Lifetime Accident Total Disability Rider Option

• Extends benefit payments for your lifetime if total disability results from accidental injury.
• Available to members aged 59 or younger.

How to apply for AMA disability insurance?

Applying for AMA disability insurance is straightforward. All you have to do is fill out a form and submit it.

Here's what you will need to do:

• Gather your documents: You'll need to provide some basic information, such as your date of birth, medical history, and desired benefit amount.
• Schedule a medical exam (if required): Depending on your age, health, and desired benefit amount, you may need to complete a medical exam as part of the application process.
• Review and submit your application: Once you've completed all the steps, review your application carefully for any errors before submitting it.

Download the application form here:

Before choosing any plan, don't forget to compare multiple policies from different vendors. You can use our comparison tool to get personalized disability insurance quotes in minutes.