We are going to teach you everything you need to know about insurance in Canada and how it will benefit you as an immigrant.
Types of Insurance Available for All Immigrants
The following are the types of insurance available for immigrants in the US.
1. Health Insurance
Canada’s public healthcare system provides essential medical services through provincial health plans. However, eligibility varies based on immigration status and province. Permanent residents are generally eligible, while temporary residents might need private health insurance during their stay.
Public Healthcare (Provincial Coverage):
Each province offers public health insurance plans (e.g., OHIP in Ontario and MSP in British Columbia).
Some provinces impose a waiting period of up to three months before coverage begins.
Private Health Insurance:
Temporary residents, visitors, or those awaiting provincial coverage can purchase private health insurance to access healthcare services.
2. Life Insurance
Life insurance is needed to protect your family’s financial future in case of your death. Immigrants can choose between term life insurance, which covers a specific period, or whole life insurance, which provides lifelong coverage.
3. Car Insurance
Car insurance is mandatory if you own or plan to drive a vehicle in Canada. Each province has regulations, and you’ll need at least third-party liability coverage, which covers the cost of damages or injuries you cause to others in an accident. This is a basic requirement for car insurance in Canada.
4. Home and Tenant Insurance
Home insurance protects homeowners against damage, theft, or natural disasters. Renters can opt for tenant insurance to cover personal belongings and liability for damages caused to the rental property.
5. Travel Insurance
New immigrants awaiting provincial health coverage or those on temporary visas can benefit from travel insurance. This covers emergency medical expenses, lost luggage, and trip cancellations.
Eligibility for Insurance in Canada
There are some requirements that need to be in place before you can be eligible for some type of insurance in Canada. See below:
Health Insurance:
Eligibility for public healthcare is primarily based on immigration status and the province where you reside. Permanent residents and citizens are automatically eligible, while temporary residents might need private insurance for healthcare services.
Provincial Waiting Periods: Some provinces, like British Columbia, have a 3-month waiting period before your public health insurance starts. You can rely on private insurance to cover medical expenses during this period.
Other Insurance Types:
Eligibility for life, car, and home insurance typically depends on your residency status and whether you have a permanent or temporary address in Canada. Many insurance providers offer coverage to both permanent and temporary residents. Other insurance types you might consider include disability insurance, which provides income if you’re unable to work due to illness or injury, and travel insurance, which covers medical expenses and trip cancellations when you’re traveling outside Canada.
Step-by-Step Process to Apply for Each Insurance Type in Canada as an Immigrant
Here, we reveal the step-by-step guide to applying for the major insurance type that an average immigrant in Canada will need.
1. Health Insurance (Provincial):
Determine Eligibility: Check whether your visa or residency status qualifies you for public healthcare in your province.
Gather Documents: You’ll need your passport, immigration documents, and proof of residence (utility bills, lease agreements).
Apply: Visit your provincial healthcare website (e.g., Service Ontario, Health Insurance BC) and complete the online application, or apply in person at a health office.
Wait for Processing: Your application may be processed in a few weeks, and you won’t be covered immediately in provinces with waiting periods. If necessary, use private health insurance during this gap.
2. Private Health Insurance:
Research Providers: Look for reputable private health insurers such as Manulife, Sun Life, or Blue Cross.
Select a Plan: Choose a coverage level that suits your medical needs (hospital, dental, etc.).
Submit Your Application: Apply online by filling in your personal and visa details.
Get Confirmation: Your coverage can start as soon as your application is approved or on your specified start date.
3. Life Insurance:
Choose a Provider: Consider providers like Canada Life, Desjardins, or Sun Life.
Get a Quote: To get an estimate, provide your age, medical history, and desired coverage amount.
Submit Application: Apply online or in person, providing your personal information, visa details, and medical history. A medical exam may be required for approval.
Policy Issuance: Once approved, you’ll receive your life insurance policy with all the coverage details.
4. Car Insurance:
Register Your Vehicle: 11qEach province has its own rules, so you’ll need to register your car and get the necessary insurance coverage.
In British Columbia, for example, ICBC (Insurance Corporation of BC) provides mandatory coverage.
Select Coverage: You’ll need at least third-party liability insurance, but consider adding collision and comprehensive coverage for extra protection.
Submit Application: You’ll need your driver’s license, vehicle registration, and proof of residency.
Activate Coverage: Your car insurance coverage begins immediately after approval and payment.
5. Home Insurance:
Choose Coverage: Decide if you need home insurance (if you own your home) or tenant insurance (if you rent). Look for policies from providers like TD Insurance, Intact Insurance, or The Co-operators.
Get a Quote: Provide details about your home or rental property, including location, value, and security features.
Submit Application: Apply online or through a broker by providing your personal details, property info, and payment method.
Policy Activation: Coverage typically starts as soon as payment is processed.
How Much Will It Cost Immigrants To Get Insured In Canada
Insurance in Canada is not only a necessity but also quite affordable. Knowing this, you can plan your budget accordingly and subscribe to the insurance that best suits your needs.
Health Insurance:
Public healthcare is free for residents, but there might be additional costs for services not covered, like dental or prescription drugs.
Private health insurance for non-residents can range from CAD 50 to 200 per month, depending on coverage.
2. Life Insurance:
Life insurance premiums depend on age, health, and coverage amount. Monthly premiums for term-life policies can start at around CAD 20 to 50.
3. Car Insurance:
Car insurance costs may differ by province and driving history. On average, expect to pay CAD 1,000 to 1,500 per year.
4. Home Insurance:
Homeowners typically pay around CAD 500 to 1,000 per year, depending on the location, value, and type of coverage, while renters pay lower rates, like CAD 15 to 30 per month for tenant insurance.
Conclusion
Insurance is a very important measure to take, especially when moving to a first-world country like Canada, where the cost of essential services like health, legal fees, etc., could be hideously high. Having insurance like health insurance, home insurance, and car insurance will help mitigate loss against any unforeseen circumstance.
Let’s say you took ill after arriving in Canada; you will be entitled to a subsidized healthcare services because of the health insurance you’re subscribed to. This lets you know that insurance is very important for immigrants in Canada, and that is why we took the time to come up with this post.