When is the best time to buy health insurance?
The best time to buy health insurance is when you don’t have it.
Let us explain.
For most Canadians, government healthcare in Canada only covers some medical expenses. This means that you have to pay out-of-pocket for many common health costs. A visit to the dentist, getting glasses, prescriptions medication: None of these are included in universal coverage for all Canadians.
This is why many Canadians have other health insurance to help fill these gaps.
In fact, 64% of Canadians have insurance plans to help cover health costs. These can translate to significant savings. According to Abacus Data, the average Canadian household with health insurance:
- Saved $913 on prescription drugs
- Saved $816 on dental
- Saved $340 on eye care
That’s an average of over $2000 saved on just those 3 common health categories alone.
Many Canadians – 41% according to Abacus – get their insurance plan through their workplace.
This means that losing your job or retiring can also lead to losing your additional health insurance.
And that makes it a great time to look into private health insurance plans like Freedom to Choose health and dental insurance.
These private plans help to bridge the gap for Canadians who don’t have benefits. They can also be a good option if you’re looking to supplement existing coverage that might not be sufficient for your needs.
Here are a few scenarios where it might be a good time for you to get private health insurance.
Changing or between jobs
Many people who are used to having insurance coverage have it through their job. When they leave their job, they could lose that coverage.
You might go on to another job that also has benefits – or you could find yourself in a situation where you don’t have that workplace coverage anymore.
For example:
- You could have been laid off or fired.
- You’re working for yourself.
- Your new company doesn’t offer benefits.
This is a moment to consider private health insurance, especially if you’re concerned you may not be eligible due to a pre-existing health condition.
That’s because many private insurance plans, including Freedom to Choose health and dental insurance, offer plans specifically aimed at people losing other coverage.
But don’t procrastinate: These types of plans are often time-sensitive, meaning you have to have lost your coverage recently. This is often within the last 30 or 60 days.
For example, Freedom to Choose health and dental insurance Guaranteed plans are only available if you’ve left another plan within the last 60 days. These “guaranteed acceptance” plans can be a great option if you have a pre-existing condition, or you just don’t want to complete a medical questionnaire.
They also waive the usual waiting period for dentalcare, meaning you can avoid a gap in coverage.
Nearing retirement
The irony for many Canadians is that we could lose our workplace benefits right around the time that many people’s health needs increase.
And while certain government benefits aimed at seniors, like prescription drug coverage and dentalcare, kick in around this time, not everyone is eligible for them. They may also not cover all your needs.
For example, the “formulary” - which drugs are covered – can be limited, meaning a prescription drug you need isn’t included.
With private health insurance, you can help to cover that gap. Freedom to Choose health and dental insurance, for example, can offer up to $250,000 in prescription drug coverage and levels of dental coverage that can include major costs like crowns.
FYI: Freedom to Choose Select plans are “underwritten,” mean you will have to answer some medical questions and pre-existing conditions may not be covered. If you do have pre-existing conditions, you might consider our guaranteed acceptance plans instead.
Freedom to Choose health and dental insurance also has no termination age, meaning you’ll never be too old to keep your plan as long as you’re still paying your premiums.
Freelancer or self-employed
When you work for yourself, you’re handling everything on your own – including out-of-pocket medical costs.
A private health insurance plan like Freedom to Choose health and dental can help cover those costs. Think of it like your own personal workplace benefits plan. You may even be able to deduct it from your business expenses.
And, as a freelancer you might find some of the other benefits offered by private insurance helpful. For example, Freedom to Choose health and dental includes massage therapy, physiotherapy and mental health specialists.
Moving provinces
Many provincial healthcare plans have “waiting periods” before your coverage kicks in. Private health insurance, on the other hand, moves with you wherever you go in Canada with no gaps in coverage.
This means that if you strain your back packing boxes and need a massage or break your glasses 2 days after moving across the country, you’ll be covered.
Planning ahead
Getting private health insurance today can mean preparing for tomorrow’s health needs.
If you wait until you have a serious condition, you may not be eligible for the coverage you need. Or, you could find yourself paying higher premiums than if you had taken out a plan before a diagnosis.
Common questions about buying private health insurance
Do I need health insurance if I already have provincial coverage?
Government healthcare in Canada covers some medical costs but not all. For example, dentalcare is only partially covered for specific groups. Other common needs not generally covered by provincial health plans include vision, prescription drugs, and paramedical services like physiotherapy, massage therapy and mental health specialists.
Private health insurance can help cover these out-of-pocket costs.
What happens to my benefits if I leave my job?
When you leave your job, you will usually lose your benefits. This means that any health insurance coverage you had through work will end.
How quickly must I apply for guaranteed coverage after losing group benefits?
You usually have a short window of time to apply for guaranteed coverage if you’re leaving a group plan. For example, you must apply for Freedom to Choose health and dental insurance Guaranteed plans within 60 days of losing other coverage.
Can I get coverage if I have a pre-existing condition?
Yes, you can get private health insurance coverage with a pre-existing condition, but you may pay higher premiums.
One option is to apply for a “guaranteed acceptance” plan offered through Freedom to Choose health and dental insurance. This plan has no medical exam, and you’re guaranteed to get coverage.
If you’ve left other coverage within the last 60 days, you could consider applying for one of our Guaranteed Acceptance plans. Another option – which you can apply for whether you’re losing other coverage or not – is the Select with Assured Acceptance plan.
Are premiums tax-deductible for self-employed individuals?
Yes, private health insurance premiums are tax-deductible for Canadians.
What does Canada Life’s Freedom to Choose health and dental insurance cover?
Freedom to Choose health and dental can help you tackle medical costs not covered by your government health plan – at a price that works for you and your family. We have multiple plan options with different coverage to include a range of healthcare needs, such as:
- Routine dental services
- Eye exams, glasses, contact lenses and laser surgery
- Prescriptions drugs
- Physiotherapy, chiropractor visits and massage therapy
- Social workers and psychologists
- Naturopaths, dietitians, acupuncturists, no referral needed like all our paramedical services.