What is health insurance?
Coverage for everyday health costs, or if you or a loved one become sick or injured.
Health insurance is a policy or contract that gives you, the insured person, financial coverage to help pay for health-care needs. Depending on your policy, the insurance company pays for your covered health-care expenses. You pay the insurance company a monthly premium or fee.
In Canada, some of your health-care needs are already covered by your provincial or territorial plan. But it’s likely that government health care won’t cover all the medical, dental, or other health-care costs you might face throughout your life. Health insurance can help you cover these costs.
The COVID-19 pandemic has shown many Canadians just how quickly a health event can lead to financial hardships. Having health insurance coverage from an insurance company can help you avoid:
- paying out-of-pocket to cover various health-care costs,
- asking loved ones or family members for money, or
- dipping into your savings to cover the costs of an illness or injury.
Depending on the type of health insurance you buy, you can receive coverage for a range of health-care issues, including the cost of:
- prescription drugs,
- dental bills,
- hospital stays,
- serious illnesses,
- disability, or
- long-term care due to aging.
