Up to 76% of Canadians have private health insurance, most often as part of an employee benefits package. But what if you’re self-employed? We’re exploring why health insurance is crucial for self-employed business owners and how you should secure coverage.
For all its niceties, employer-provided health or life insurance usually has its shortfalls. It provides a certain amount of coverage but doesn’t tailor it to your needs. That said, if you are newly self-employed, you may be missing the protection it provides. Thankfully, there are more robust and cost-effective ways to cover your health insurance needs as a self-employed person.
Nearly 1 in 5 Canadians are now self-employed, with most citing time freedom, work-life balance, and the ability to choose their direction as their primary reasons for taking this step. Self-employment can be a launchpad to creating the life you want, but it is critical to remember that you need the same securities as the employed do, sometimes even more.
The average Canadian is on a salary; their income is fixed. As and when they need to pay an unexpected health bill, they can rely on their fixed income combined with employer-based health insurance to ensure that bump in the road is medical alone, not also financial. As a self-employed person, we know you don’t have that same level of income security. Your business will fluctuate – in terms of sales and how much you want to draw from it. When a health issue arises, you get penalized in two ways – first, the costs can skyrocket, but you may be temporarily unable to earn at the same level, even if market conditions would allow it.
This combo of unknown income and instability means it is crucial to lock in coverage to protect yourself and your business financially.
Self-employed Health Insurance
As a goal-focused individual, you are in a great position. Your health coverage will be specific to your needs and can be adjusted as your business develops. We understand you may be looking for a cost-effective option; we can talk you through each policy element, ensuring you pay for the coverage you need but not the bits you don’t.
Some health insurance policies can cover existing conditions, but others allow you to get more affordable coverage with an exemption on existing conditions. If you’re still part of a group plan, you can add an additional policy to ensure your coverage level is correct for your circumstances. And there is plenty of flexibility to add in the things that matter most to you. When you buy health insurance through a broker, you can choose from a wide variety of options and can pinpoint exactly what you need as a self-employed business owner.
Taxable Deductions of Health Insurance
As you’re self-employed, your health insurance premiums are eligible as medical expenses under the Canadian Federal Income Tax Act. We’re not licensed to assist you in financial matters, so please discuss it with your accountant, but your premiums may be able to deduct your health coverage premiums from your annual income.
Talk to us about self-employed health insurance
If you’re self-employed without health insurance, you are putting your business at risk. Your well-being and income are intrinsically tied, so locking in coverage to protect both is a sound business decision. Our policies are robust and competitively priced. Please speak to us today about affordable health insurance coverage that suits your needs.
Blue Country Insurance – all your protection under one roof … because your health and life matter.