When Should You Buy Private Health Insurance?

While Canada’s public health system covers many core medical needs, it does not extend to routine dental care, prescription drugs, vision services, or paramedical care like physiotherapy or counselling. Private health insurance helps bridge these gaps. But knowing when to buy it and why timing matters is essential to getting the most value from your coverage.

For many people, private insurance becomes most relevant during times of change or when support from public plans or an employer is limited.

Key Moments to Consider Private Coverage

The right time to buy private health insurance depends on your personal and financial circumstances. Here are common life stages where it makes sense to consider applying:

Starting a new job or losing employer benefits
If you are in between jobs, starting a contract role, or moving to self-employment, private insurance can replace or supplement the group benefits you no longer have.
Becoming self-employed or freelancing
Entrepreneurs and gig workers do not have access to employer-sponsored health plans. Buying individual coverage can protect you from unexpected costs and help with routine care.
Retiring or transitioning out of the workforce
When you leave your job, your group benefits usually end. If you still want coverage for prescriptions, dental, or vision services, private insurance can help maintain consistency in your care.
Developing a medical condition
If you begin to rely on medications or frequent therapies, having insurance in place can help manage these costs. However, applying before a diagnosis may give you more options and fewer exclusions.
Planning a family
If you are starting a family, private insurance can offer access to wellness services, counselling, and pediatric care benefits that support both parents and children.
Traveling frequently
Private insurance with travel medical coverage ensures that you are protected in case of emergencies outside your home province or abroad.

Tip: The best time to buy private health insurance is before you need it. Once you develop a health condition, it may be excluded or raise your premiums. Applying while healthy often leads to better rates and broader coverage.

Why Timing Affects Coverage and Cost

Private insurance typically requires some level of underwriting or health disclosure. Waiting until a medical condition develops can:

Limit the policies you qualify for
Increase your premiums
Exclude coverage for existing conditions

Buying early, especially when transitioning away from group coverage, can help you lock in access and affordability before health issues complicate the process.

Note: Some insurers offer conversion options when you leave an employer plan, allowing you to switch to individual coverage without a full medical review. These must usually be done within 60 to 90 days of ending group benefits.

Caution About Waiting Too Long

Delaying private insurance may leave you with large out-of-pocket costs for care that is not covered publicly. If you need dental work, mental health support, or travel medical services and do not have insurance in place, the cost can add up quickly.

Routine dental care, including cleanings and fillings, often exceeds $200 per visit
Prescription drugs for chronic conditions can run into hundreds of dollars each month
Emergency medical care outside Canada can cost thousands without travel coverage

Plan Ahead for a Smoother Transition

Private insurance works best when it is part of your larger financial plan. Consider your health needs, career plans, and whether you expect to lose or gain employer coverage in the near future.