- April 13, 2022
- Category: Life & Group, Tips & Advice
You have likely noticed how expensive your grocery bill, among other expenses, have been recently. In Canada, the Consumer Price Index – the most well-known indicator of inflation – rose 3.4% in 2021. This was the highest rate of inflation in Canada since 1991. What if you or someone in your family unexpectedly need healthcare not covered by your government provincial plan? How will you manage that financially?
Having health insurance helps you prepare for unexpected healthcare costs when an illness or injury happens to you, your spouse, or your children. Knowing your finances are protected from out-of-pocket healthcare costs (prescription drugs, dental care, therapy) will give you peace of mind.
Why might I need private health insurance?
Certain circumstances make it more likely that you will need to purchase a private health insurance plan, including:
- A young adult 26 years of age or older. Young people can be covered as dependents by their parent’s health insurance policy until they turn 26 years old.
- A part-time employee. Part-time jobs rarely offer health benefits. A part-time job is any position that requires employees to work a lower number of hours than would be considered full-time by their employer, or 40 hours per week.
- Self-employed. A self-employed person may work as a freelancer or own a business. Some self-employed people can get health insurance through a spouse’s plan.
- A business owner who has employees. If you start a business and you have employees, you might be required to offer them health insurance. Even if it is not required, you might decide to offer health insurance to be a competitive employer that can attract qualified job candidates. In this situation, you will be required to purchase a business health insurance plan, also known as a group plan.
- If you retire (or your spouse/parent retires). When you retire, you will likely no longer be eligible for employer-sponsored health insurance. Many retirees choose to purchase a private health insurance plan in addition to MSI as a way of guaranteeing more comprehensive coverage.
Personal health insurance coverage can cover any ‘gaps’ between those times you have group health insurance through an employer and those times that you do not.
How much does private health insurance cost?
While many people are scared by the prospect of purchasing private health insurance versus enrolling in an employer group plan, some studies have shown that it can end up being more affordable than employer group plans.
There are several different kinds of health insurance plans that can be designed to fit your personal needs. You can build the plan you need now, knowing you can change it as your circumstances and needs change. You can also select a plan with monthly premiums that fit your budget – click here to get a quote.
It is not realistic to think that health insurance costs will remain the same forever, but health insurance is a solid step to protect your annual household budget against inflation. To lessen the impact of inflation – go back to the basics. Take a look at your health and dental coverage and review that they continue to meet your needs. Remember, while prices are rising for just about everything, it is our job to be there for you and to keep your costs reasonable.