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Individual Insurance Plans in Canada

2026 Complete Guide: If you don’t have employer benefits, choosing the right individual insurance plan is essential to protect your health, income, and family’s future.

Types of coverage
Cost analysis
Insider tips

What Is an Individual Insurance Plan?

An individual insurance plan (also called private or personal insurance) is coverage you purchase directly from an insurance provider — not through an employer. It's the critical bridge between provincial care and total protection.

It's ideal for:

Self-employed professionals
Small business owners
Contractors & freelancers
People between jobs
Retirees under 65

Types of Coverage Available

Private Health Insurance

Covers prescription drugs, dental, vision, and paramedical services that OHIP/Provincial plans ignore.

  • Prescription medications
  • Physio, Massage & Chiropractor
  • Out-of-province medical emergency

Strategy: Compare reimbursement levels (70% vs 100%) and annual maximums before committing.

MANULIFESUN LIFEBLUE CROSS

Individual Life Insurance

Financial security for your family. Choose between affordable Term or lifelong Whole Life coverage.

  • Term: Fixed (10, 20, 30 years)
  • Whole Life: Builds cash value
  • Mortgage & Debt protection

Insider Tip: Lock in 20-30 year terms while young. Premiums are significantly lower and guaranteed.

Disability Insurance

The most vital plan for self-employed Canadians. Protecting your most valuable asset: your ability to earn.

  • Income replacement (up to 70%)
  • Own Occupation definitions
  • Elimination period adjustment

Note: Professional income depends on you. Disability insurance is often more critical than life insurance.

Individual Dental Insurance

High-performance dental coverage. Essential for those needing predictable oral health costs.

  • Basic & Major Restorative
  • Up to $2,500 annual maximums
  • No waiting period options

Wait Check: Some plans have 6-12 month waiting periods for major dental work. Plan ahead.

How Much Does It Cost?

2026 Estimated monthly premiums for healthy individuals in Canada.

Insurance TypeAverage Monthly Cost
Health Insurance$80 – $200
Life Insurance (Term)$20 – $60
Disability Insurance$50 – $250
Dental Insurance$40 – $90

Costs depend on age, province, smoking status, and medical history.

Cost Variables

  • Age Factor: Early enrollment locks in lower rates for life.
  • Health Status: Non-smokers typically save 40%–60% on premiums.
  • Geography: Provincial tax and regulation impact final pricing.
  • Multi-Policy: Bundling health and life creates significant discounts.

How to Choose the Best Plan

1

Identify Gaps

What does your provincial plan not cover? (Dental, Scopes, Drugs)

2

Set Budget

Insurance should typically stay under 5–10% of monthly income.

3

Compare

Don't just look at price. Compare maximums and exclusions.

4

Flexibility

Look for guaranteed renewability and conversion options.

Common Mistakes to Avoid

Buying solely on cheapest price
Ignoring pre-existing clauses
Underestimating disability risk
Not reviewing coverage annually
Over-insuring (paying for unused benefits)

Frequently Asked Questions

Yes, especially if you need dental, prescriptions, or paramedical services not covered by provincial plans like OHIP or AHCIP. For self-employed individuals and those without employer benefits, it provides critical financial protection against unexpected medical costs.
Basic individual plans start around $60 per month but offer limited coverage. The best value often comes from mid-range plans that cover $1,000+ in annual dental and drug costs, ensuring your premiums actually translate into usable benefits.
Yes, but it may exclude related treatments or require higher premiums. 'Guaranteed Issue' plans are specifically designed for those with medical histories, offering coverage with no medical exams or health questions.
Often yes, especially during provincial healthcare waiting periods (which can be up to 3 months in some provinces) and for essential services never covered by the government, such as prescription drugs and dental care.

Protect Your Future Today

Don't leave your family's financial security to chance. Work with a certified advisor to find the most sophisticated coverage at the lowest market rate.