Medical Students
It is not uncommon for medical students to carry over $100,000 of debt by the time they enter residency. With that amount of debt, it is a challenge to balance your budget and make any progress with your financial growth. At Clarity Group, we want to help you with more than choosing your disability insurance. Through detailed anaylsis of your individual needs, we will help you gain better understanding of your options so you can make wise financial decisions with confidence based on your long-term goals.
The following is some of the common questions we will help you answer:
- How should I manage my debts?
- When should I start investing?
- How should I make use of RRSP and/or TFSA?
- Should I rent or buy a house/condo?
- What is the most effective way to save for a down payment?
- Why should I buy disability insurance when I am already covered under PAIRO?
- How various disability plans (OMA, Private/CFMS) compare with each other?
- When should I start looking into life insurance?
Canadian Federation of Medical Students
As a member of the CFMS, medical students are eligible for disability income protection without ever having to provide evidence of health. In conjunction with RBC Insurance, CFMS has endorsed a disability insurance plan that focuses on your current needs while providing flexibility for your future requirements. The plan offers substantial premium reduction over regular rates and five months of waived premium. If you would like to get a quote or learn more about the various options available to you, please contact us here.
| Key Benefits of the CFMS Disability |
What it means and how it differs from the association plan? |
| Individually owned insurance contract |
With the CFMS plan, you are the owner of an insurance contract. Your contract provisions at claim time will be the same as those at time of issue. With association plan, future claims experience or negative market trends may affect the premiums and/or contract wordings. |
| Non-cancellable by the insurance company |
Under the CFMS plan, the insurance company cannot cancel your coverage as long as you pay your premiums. The coverage is unconditionally renewed at the guaranteed premium until age 65. |
| Guaranteed premiums and provisions to age 65 | Premiums and definitions are contractually guaranteed under the CFMS plan. The association contract, however, can be amended at any time by the insurance company and/or association without the consent of, or notice to, the insured members. |
| No “limitations” provision | Under the CFMS plan, if you qualify for total disability, 100% of the benefit will be payable. Under the association plan, a limitation provision stipulates that the disability benefit cannot exceed the average income prior to the onset of disability. In other words, the insurance company can lower the benefit according to your income at claim time as opposed to paying out the full benefit. |
| Partial disability option | The CFMS plan gives you the option to choose between partial (time loss) and residual claim (income loss) to maximize your disability benefits. This is essential because a partial claim may yeild higher benefits at the early stage of a claim if the disabiility does not lead to immediate significant income loss. With the assocation plan, partial benefit is not available. |
| Future income frequency and otpion amount |
The CFMS plan gives you the flexibility to increase your coverage every year of up to $3,000 plus carried forward. With the assocation plan, you can only increase every other year and the amount is limited to $2,500 for age 40 or under and $1,000 if above age 40. This is very restrictive because your income will continue to grow beyond age 40. |
Disabiliity Insurance Limits
| Status | Maximum Monthly Benefits |
| 1st year medical students | $1,500 |
| 2nd year medical students | $1,500 |
| 3rd year medical students | $2,500 |
| Final year medical students | $4,000 |
| Residents | $4,000 |
| General - 1st year of practice | $6,500 |
| Specialists - 1st year of practice | $9,000 |
| Fellows | $7,500 |
