When we’re going through a major life change (finishing school, changing jobs, retirement, etc.), it’s the perfect time to review our financial plans. In many cases, this will include evaluating your needs for health and dental insurance, now and in the future.
Are you wondering if it’s time to consider purchasing private health insurance?
Review the four sure signs it’s time to get health insurance to see if these scenarios apply to you.
You are a recent graduate
New graduates have a lot to celebrate. It’s the first step to a new life as an independent adult. There are a lot of changes on the road ahead, and at least one of those changes includes losing health and dental coverage when:
- you study as a part-time post-secondary student, you are not eligible under your parents’ health and dental insurance
- you continue to study but are over the age of 25
- you graduate from full-time studies and lose any coverage you had through your program at school.
If you are a recent graduate, or you’re finishing school this year, you may think losing this coverage is no big deal. After all, soon enough you’ll have your own job and your own benefits coverage, right?
Maybe not. In many cases, new graduates are working in contract or part-time positions, and these generally don’t come with health benefits. No healthy young person likes to think about what would happen if they got sick or injured, but the reality is that it happens all the time. A lot of the services you once took for granted, like vision care, dental treatments, or trips to the physiotherapist, will now come out of your pocket.
You have lost your job and your benefits plan
Losing a job can be a devastating event in a person’s life. Losing the health and dental insurance benefits that came along with that position makes it even worse. This is especially true if your spouse and dependents were covered under that plan.
There are many programs and services available from the government of Canada to help you and your family through this challenge, including some that help get you on the road to finding a new job. For the time that you are unemployed, and during the waiting period to become eligible for benefits at your new job, we have one more thing for you to think about.
Illnesses and injuries don’t wait for a time when it’s most convenient for you. Neither do trips to the dentist or the pharmacy. Health and dental insurance can help protect your family’s financial interests during a period of unemployment. If you require coverage for an existing condition for yourself or a member of your family, it’s best to apply within 90 days of losing your group benefits. If you are changing jobs, there may be a gap in health coverage you’ll need to fill too.
You are ready to be self-employed
Being your own boss can be a great experience. As of 2018, almost three million Canadians were self-employed. If you are taking the leap to the world of entrepreneurship, you already have a lot on your plate.
When you have played it safe through building your business while keeping your day job, it’s easy to look at how much money you need to quit your job as a simple matter of income versus expenses.
It’s not quite that easy. There are a lot of other perks that come with the job you are planning to leave. For example, you may be foregoing a pension plan and group health and dental benefits.
Losing your insurance coverage isn’t a reason to stay at your job when your heart is somewhere else. However, it does have to factor into your budget when you’re thinking about how much revenue you need to generate to pay the bills.
It’s why you need to think about buying health insurance. Though you will have to discuss the specifics with your accountant, you may be able to deduct your insurance premiums as a business expense. Peace of mind and a tax deduction all at once!
You are approaching retirement
Retirement. It’s the time to slow down and spend more time on the things that really matter to you. It’s the cherry on top of a long career, or maybe it’s the light at the end of the tunnel. No matter how you look at it, there’s definitely going to be a shift in your household budget. In a lot of cases, retirement also means the end of company-sponsored health and dental insurance benefits.
For many retirees, this time means getting used to managing on a lower income. During your working career, when there are unexpected expenses, there’s always the chance to make more money if you need it. That’s not necessarily true in retirement!
The unexpected cost of paying for prescription drugs or rehabilitative therapy can be a real hardship to people living on a fixed income. Though health and dental insurance premiums may seem high at first look, they pale in comparison to the high cost of paying out-of-pocket for services like physiotherapy, prescription drugs, vision, hearing aids, dental, ambulance transportation and semi-private hospital rooms.
An insurance broker can help you determine what coverage is best for you based on your highly individualized circumstances. And at SBIS we have online resources to help you too.
You are ready to sign up for health insurance
There are many reasons to choose to carry private health and dental insurance, including these four sure signs. When you’re ready to start talking about the options that make the most sense for you and your family, go online or give us call!
