Covering Yourself: Health Plans for Solo Workers
Being your own boss has a ton of perks, but it also means you don’t automatically get benefits like employees do. That’s where extended health benefits come in - they cover the extras that provincial healthcare doesn’t, and can save you from some serious out-of-pocket costs.
Here’s a breakdown of the main options:
Traditional Health & Dental Plans
These are the “classic” insurance plans. You pay a monthly premium, and they help cover things like:
Prescription drugs
Dental visits and treatments
Vision care (glasses, contacts, eye exams)
Paramedical services (massage, physio, chiropractor, etc.)
Who it’s for:
Solopreneurs with families who want predictable coverage and peace of mind.
Health Spending Accounts (HSA)
An HSA is like a flexible benefits wallet. You set aside business dollars, and you (and your family) can use them for CRA-approved medical expenses.
Advantages:
100% tax-deductible
Covers a wide range of health costs
Flexible - you only pay for what you use
Who it’s for:
Solopreneurs who want control and tax savings, and don’t need a full traditional plan.
Hybrid Plans
Some providers combine a small traditional plan (for prescriptions or dental) with an HSA for extras.
Who it’s for:
Families who want predictable coverage for essentials, plus flexibility for the “extras.”
Catastrophic / Major Medical Plans
These cover only the big stuff - serious illnesses, expensive prescriptions, hospital stays, or medical equipment.
Who it’s for:
Solopreneurs who want protection against rare but expensive events without paying for day-to-day coverage.
Lifestyle Add-Ons
Some plans let you add:
Travel medical coverage
Mental health support
Wellness programs or paramedical services
Not essential, but can round out your plan and support overall health.
Providers & Options
Here are some reputable options in Canada:
(click on their names for more info)
Known for their flexible self-employed plans, which often feature a "guaranteed acceptance" option, meaning you don't have to answer medical questions. They offer plans that cover a wide range of services, including prescriptions, dental, vision, and paramedical services. This can be a great option if you have a pre-existing condition and want to ensure you're covered.
This is a major player in the Canadian market, offering a variety of traditional health and dental plans. Their "Freedom to Choose" plans are a popular option for the self-employed, providing customizable coverage for everything from routine dental care to mental health support and paramedical services. It’s a good choice if you're looking for a comprehensive, long-term solution.
As a not-for-profit health benefits society, Pacific Blue Cross focuses on providing modular coverage options that are easy to scale. They have plans specifically for individuals and families, and you can often build a plan by selecting the "modules" you need, like prescription drugs, dental, and extended health. This can be particularly useful for customizing a plan to fit your specific budget and needs.
A well-known financial institution that also offers individual health and dental plans. They have a range of options, from basic plans that cover essentials to more comprehensive packages. Their reputation for customer service and financial stability makes them a reliable choice.
Another major insurance company with a strong presence in the individual health benefits market. Manulife offers a variety of plans, including traditional plans and options with Health Spending Accounts. Their flexibility allows you to find a plan that fits your specific situation, whether you're looking for basic coverage or a more robust plan.
My 2 Cents
Being your own boss is awesome, but you know what isn’t? Paying out of pocket every time you or a family member needs to see the dentist or get new glasses. That gets old, fast.
Think of benefits like a first-aid kit on-site. You hope you never need it, but when you do, you’re glad it’s there.
The peace of mind that comes from knowing you're covered for a therapy session is worth more than all the dental cleanings in the world.
Whether it's a traditional plan or an HSA, having a little backup for health stuff isn't fancy, it's smart. Your wallet… and sanity… will thank you.
