As a self-employed individual in Canada, you’re responsible for paying for your own health and dental costs that aren’t covered by your BC Services Card or other public health plan. This can include prescription drugs, physiotherapy, massage therapy, teeth cleaning, and vision care. While public health insurance covers most essential medical services, there are many out-of-pocket expenses that can add up quickly.
Why is Health Insurance Important for Self-Employed Individuals?
There are lots of reasons why entrepreneurs and other self-employed individuals should care about health insurance. First, it can help to protect you from financial hardship in the event of a serious illness or injury. Without health insurance, you would be responsible for paying for all of your medical costs out-of-pocket, which could bankrupt you and your family.
Second, health insurance can give you peace of mind knowing that you are covered for unexpected medical expenses. This can allow you to focus on your business and your health, without having to worry about how you will pay for your medical care, should the need arise.
Finally, as the owner of your own business, health insurance can help you attract and retain top talent. If you’re able to offer health insurance as a benefit to your employees, it can make your business more competitive and help you to attract and retain the best employees.
What to Look for: Types of Health Insurance for Self-Employed
There are a number of different types of health insurance available for self-employed individuals in Canada. The most common type of health insurance is “personal health insurance.” Personal health insurance plans are designed to cover individuals and they can be tailored to meet your specific needs and budget.
Another option for self-employed individuals is an Association Health Insurance Plan (AHP). These are offered by professional associations and trade groups, such as your local chamber of commerce. Association health plans take advantage of numerous small employers uniting to provide a unified, extensive group health plan. Association health insurance plans can be more affordable than individual health insurance plans, but they may also have stricter eligibility requirements.
Finally, self-employed individuals may also be eligible to purchase group health insurance through their spouse’s employer. If your spouse’s employer offers group health insurance to their dependents, you may be able to be added to their plan.
How to Choose the Right Health Insurance Plan
When choosing a health insurance plan, it is important to consider your specific needs and budget.
- The types of health care services you use: Do you need coverage for health practitioners like physiotherapist, dietitian, chiropractor, or psychologist?
- Your budget: How much can you afford to pay in monthly premiums and deductibles?
- Your health status: Do you have any pre-existing medical conditions?
- The provider network: Do you want to be able to see your preferred doctors and specialists?
It is also important to read the fine print of any health insurance plan before you purchase it. Make sure you understand the terms and conditions of the plan, including the waiting periods, exclusions, and limitations.
How to Get Health Insurance as a Self-Employed Individual
There are a number of different ways to get health insurance as a self-employed individual. You can purchase a plan directly from an insurance company, through a broker, or through an association or trade group.
If you are purchasing a plan directly from an insurance company, you can visit their website or call their customer service department to get a quote. If you are working with a broker, they will be able to help you find a plan that meets your needs and budget. And if you are eligible for association health insurance, you can contact your professional association or trade group to learn more about their plan options.
Tips for Saving Money on Health Insurance
Here are a few things you can do to save money on health insurance as a self-employed individual.
- Shop around and compare quotes from multiple insurance companies.
- Consider purchasing a high-deductible plan with a health savings account (HSA). HSAs allow you to save money on taxes and pay for out-of-pocket medical expenses with tax-free dollars.
- Take advantage of preventive care services, such as annual checkups and screenings. Insurance often covers preventive care services, and they can help you stay healthy and avoid costly medical problems down the road.
By choosing the right plan and taking advantage of all available discounts, you can save money on health insurance and protect yourself from financial hardship in the event of a serious illness or injury.
Transitioning from a Group Plan
Transitioning from a group health plan to self-employed health insurance in Canada can be a daunting task. But it doesn’t have to be. Here are a few tips to help you make the transition as smooth as possible:
- Understand your current coverage. Before you can start shopping for self-employed health insurance, it’s important to understand your current group plan coverage. This includes knowing what types of services are covered, what your deductibles and copays are, and whether you have any pre-existing conditions that may affect your coverage.
- Compare quotes. Once you know what coverage you need, you can start shopping for self-employed health insurance. Be sure to compare quotes from multiple insurance companies to find the best plan for your needs and budget.
- Give yourself plenty of time. The transition from a group plan to self-employed health insurance can take some time, so it’s important to start planning early. Give you enough time to shop for the best plan and to make sure that your coverage is in place before your group coverage ends.
- Plan for waiting periods. Some services like dental care may have waiting periods from the start date of your insurance. So f your new insurance plan takes effect on November 1, your dental costs won’t be covered until May 1, for a 6-month waiting period. So get to the dentist while you’re still on your group plan!
Here are some additional tips to keep in mind:
- If you have any pre-existing conditions, be sure to disclose them to the insurance companies you are considering. This will help you to avoid any surprises down the road.
- If you take any prescription medications, be sure to check to make sure the plan will cover them.
- If you are planning to travel outside of Canada, be sure to check that your plan covers international travel.
Is Disability Insurance Available for Self-Employed Canadians?
Yes, there is disability insurance for self-employed people in Canada. It is a type of insurance that provides financial support if you are unable to work due to a disability. Disability insurance can help you to cover your living expenses, such as your mortgage, rent, groceries, and utilities. It can also help you to pay for any additional expenses that you may have, such as the cost of home care or medical treatments.
There are a number of different disability insurance plans available for self-employed people in Canada. Insurance companies offer some plans, while others are offered by professional associations or trade groups. When choosing a disability insurance plan, it’s vital to consider your specific needs and budget.
Disability Insurance Considerations:
- Do you need coverage for both short-term and long-term disabilities?
- Your budget: How much can you afford to pay in monthly premiums?
- Your health status: Do you have any pre-existing medical conditions?
- The waiting period: How long do you have to wait before you can start receiving benefits?
- The benefit amount: How much money will you receive each month if you are disabled?
Are Health Insurance Premiums Tax Deductible?
Yes, health insurance premiums for self-employed individuals are tax deductible in Canada. You can deduct them from your income as a business expense. This means that you can reduce your taxable income, which can save you money on taxes.
To claim this tax deduction, keep track of your health insurance premiums and submit them with your tax return. You can do this by using Form T2125, Statement of Business or Professional Activities.
Protect Your Future
Health insurance for self-employed Canadians is vital. It provides access to healthcare, financial protection against medical costs, and peace of mind, and promotes preventive care. As well, it ensures business continuity, enhances productivity, and may offer tax benefits. It’s an essential investment in overall well-being and business success. Take a look at our Pacific Blue Cross health insurance options. If you have any questions, contact us. We’re happy to walk you through your options.