No workplace benefits? No problem

By Special to MoneySense on September 25, 2015
Estimated reading time: 3 minutes

Insurance companies generally offer bare bones plans at lower prices

OTTAWA – The period of time between graduating from school to landing a full-time job with benefits can stretch on for months or years for young Canadians, meaning they lack extended health and dental benefits since they’re too old to be covered by their parents’ plans. And with the growing use of contract employees who don’t receive benefits, that means young Canadians must fend for themselves and buy their own supplemental health and dental insurance. Provincial health insurance doesn’t cover everything. Whether it’s a prescription for penicillin, a crown that needs to be replaced or an ambulance ride to the hospital, if you don’t have insurance, you’ll end up paying out of pocket. Loretta Kulchycki, vice-president of group marketing at Great-West Life, suggests consumers start their hunt for health and dental benefits by deciding how much coverage they’re going to need and researching their options online. “If you are young, you will tend to be healthier, and in that case would probably have lower premiums than somebody who, say, is planning for a retiree product,” she said. Insurance companies generally offer a choice of the level of coverage, from bare bones plans that provide basic prescription drug coverage and dental checkups to comprehensive options with higher limits and a broader range of coverage. Get the right insurance and save money » How much you want to spend will depend on your budget and what you expect your needs to be since costs can quickly escalate depending on how much coverage you’re looking to buy. “It is really about taking a look at: ‘What do I think I’ll actually use?’ as a starting point,” Kulchycki said. How often do you think you’ll go to the dentist? Do you wear glasses? Do you think you’ll need the services of a physiotherapist? Those are all questions you should ask yourself when considering coverage. Laurel Pedersen, assistant vice-president of health insurance product development at Sun Life, says if you have a pre-existing health condition, you have some choices. A “guaranteed issue” plan may be more expensive, but will cover a pre-existing condition, while a fully underwritten plan may be cheaper, but exclude costs connected with your outstanding health issues. Pedersen says an adviser can walk you through your options, and will understand what the different plans will cost, how they work and what might be in your best interest. “They’re exactly there to walk them through their broader budget considerations,” she said. Sue Reibel, senior vice-president of consumer solutions at Manulife, says if you’re coming off your parents’ group plan or another insurance plan, time is of the essence. You generally have about 60 days when you can roll yourself into an individual plan without going through underwriting. “You’ve got an opportunity to get a preferential purchase,” she said. “If you pass that time frame, then you’re buying (while) taking all of your individual circumstances into account and it may affect your price.” Reibel noted that when insurance shoppers consider what they need, it’s important to understand what other coverage they already have and what they need so they don’t end up paying for non-essential items or lacking insurance for something they could have anticipated. “It is understanding where your personal gaps are,” she said. “It takes some time to really think about your personal situation and reflect. It is not a big investment of time, we’re talking about half an hour of thinking that can save you a lot of money.” The only insurance guide you need »

Comments Cancel reply

Columns

Why I’m optimistic about the markets in 2025–tariffs or no

This advisor isn’t losing any sleep over the markets. In fact, looking back at 2024 and forward into 2025,...

Why I’m optimistic about the markets in 2025–tariffs or no

A car steering wheel and a bowl of pasta, as symbols of how to get the best auto loan interest rate.

loans

Car loan interest rates: What’s the best Canadians can get?

Car loan interest rates can be as confusing as a complicated recipe, and just as daunting to navigate. This...

Car loan interest rates: What’s the best Canadians can get?

Newcomer to Canada buying their first car at the dealership asking questions of the sales person about getting a car loan.

Newcomers to Canada

Auto loans for newcomers—questions to ask when buying your first car in Canada

Buying your first car in Canada is like any other major purchase. Ask a lot of questions, not just...

Auto loans for newcomers—questions to ask when buying your first car in Canada

A woman using the MoneySense Finder tool at her work-from-home desk

ETFs

Buying ETFs in Canada Tool: The MoneySense ETF Screener

Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...

Buying ETFs in Canada Tool: The MoneySense ETF Screener

Budgeting

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

The Canadian government is sending out the last carbon rebate of 2024. See who’s eligible and how much you...

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

Canadian woman buying a car, as she learns to manage her money.

loans

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

Learn how to manage your money, understand your earnings, invest wisely and more, from this excerpt of Personal Finance...

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

Save

How much money should I have saved by age 40?

Sponsored By

CIBC

How much money should I have saved by age 40?

Save

How much money should I have saved by age 25?

Sponsored By

CIBC

How much money should I have saved by age 25?

Real Estate

How changes to the Home Buyers’ Plan could affect your down payment

Sponsored By

EQ Bank

How changes to the Home Buyers’ Plan could affect your down payment

FHSA

Unsure about buying a home? Why you should open an FHSA now anyway

Sponsored By

EQ Bank

Unsure about buying a home? Why you should open an FHSA now anyway

No workplace benefits? No problem

Comments Cancel reply

Related Articles

Why I’m optimistic about the markets in 2025–tariffs or no

Car loan interest rates: What’s the best Canadians can get?

Auto loans for newcomers—questions to ask when buying your first car in Canada​

Buying ETFs in Canada Tool: The MoneySense ETF Screener

What is the Canada Carbon Rebate? Plus, dates and amounts for 2025 rebates

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

How much money should I have saved by age 40?

How much money should I have saved by age 25?

How changes to the Home Buyers’ Plan could affect your down payment

Unsure about buying a home? Why you should open an FHSA now anyway

Auto loans for newcomers—questions to ask when buying your first car in Canada