Updated: April 20025  |  bremo.io financial guides

Health Insurance for Self-Employed Canadians: Your Complete Options

Canada's universal healthcare covers doctor visits and hospital care — but it doesn't cover dental, vision, prescription drugs, paramedical services (physiotherapy, massage, psychology), or disability income. When you leave employment, you lose access to the group benefits plan that covered all of this. As a self-employed Canadian, you need to build your own coverage.

What Provincial Health Plans Cover (and Don't)

Provincial health insurance (OHIP in Ontario, MSP in BC, etc.) covers:

• Physician visits and specialist referrals
• Hospital stays and procedures
• Emergency care

Provincial plans do NOT cover:

• Prescription drugs (in most provinces, for most adults)
• Dental care
• Vision care (glasses, contacts)
• Physiotherapy, chiropractic, massage therapy
• Mental health therapy (private psychologists)
• Ambulance fees
• Private hospital rooms

Individual Health and Dental Plans

Several insurers offer individual health and dental coverage for self-employed Canadians:

• Sun Life — individual health and dental plans, good dental coverage
• Manulife — FlexCare and FollowMe plans popular with freelancers
• Canada Life — individual coverage with various plan levels
• Blue Cross — provincial plans through Blue Cross associations
• GreenShield — flexible plans including virtual care

Monthly costs vary widely by age, province, and coverage level. A basic individual plan might cost $800–$1500/month; a comprehensive family plan with dental can run $30000–$60000/month.

Professional Associations and Chambers of Commerce

Many professional associations and chambers of commerce offer group health benefits to members at lower rates than individual plans. Worth exploring if you belong to any industry associations. Examples include:

• Freelancers Union (for some types of work)
• Canadian Federation of Independent Business (CFIB)
• Local board of trade or chamber of commerce
• Industry-specific associations (e.g., writers' unions, photographers' associations)

Health Spending Accounts (HSAs)

A Health Spending Account (HSA) is a powerful tool for incorporated business owners. Your corporation sets up an HSA that reimburses you for eligible medical expenses — and those reimbursements are tax-free to you and deductible to the corporation.

For sole proprietors, the equivalent is a Personal Health Services Plan (PHSP) — a Canada-Revenue-Agency-recognized structure that lets you deduct certain health expenses as a business cost. Eligible expenses include most medical costs not covered by provincial plans. Products like Olympia Benefits or HBSA.ca facilitate these plans.

Disability Insurance: The Most Important Coverage

For self-employed Canadians, disability insurance is arguably more important than health coverage. If you can't work due to illness or injury, there's no sick pay, no EI (generally), no disability benefits — your income stops entirely.

Disability insurance pays a monthly benefit (typically 600–85% of pre-disability income) if you become unable to work. Two types:

• Short-term disability: Covers periods from 2 weeks to 2 years
• Long-term disability: Covers extended periods, potentially to age 65

Self-employed Canadians should prioritize own-occupation long-term disability coverage. Premiums are not generally tax-deductible, but benefits are received tax-free.

EI for the Self-Employed

Self-employed Canadians can opt into Employment Insurance for access to maternity, parental, sickness, and compassionate care benefits. You must register with Service Canada and pay self-employed EI premiums. The application must be made before you need to use the benefits. This is an underused option worth investigating if you plan to take parental leave.

Critical Illness Insurance

Critical illness insurance pays a lump sum if you're diagnosed with a covered serious illness (cancer, heart attack, stroke). For self-employed Canadians without sick pay backup, this lump sum can bridge the gap while you recover and rebuild your client base.