There are many self-employed individuals in Canada, this covers a wide variety of job types. From the most obvious such as doctors, lawyers and accountants; to freelance writers, mobile repair mechanics and comedians. Individuals who work for themselves are a huge part of the Canadian economy, with close the 3 million self-employed people in 2016 according to statistics Canada. So what is the best health and dental insurance for self-employed individuals in Canada?
DENT Benefits recommends a Health Spending Account (HSA) as a great tool for all self-employed Canadians. This tool allows you to pay for 100% of your medical expenses through your business, rather than paying for them out of your personal income.
A Health Spending Account is a contract between your corporation and yourself, which allows your business to reimburse your for medical costs. These reimbursements are 100% tax-free to you, and 100% tax deductible for your company. This allows you to withdraw money without paying income tax, and write off the payments as a business expense. Withdraw money only when you need it!
The alternative to a HSA is purchasing traditional health and dental insurance for a monthly or quarterly premium. This option can have many exclusions, is often complex and results in you paying regularly for less coverage than other options. There are also many small business owners who have no insurance, and simply pay medical bills out of pocket. In some ways this can be more cost effective than traditional personal health insurance, but an unexpected medical emergency can leave you and your family vulnerable.
A Health Spending Account through DENT Benefits includes, but not limited to: travel medical insurance, emergency medical coverage and coverage for prescription drugs. Why pay more for less coverage?
If you are looking for the best health and dental insurance for self-employed individuals in Canada, we encourage you to learn more about Health Spending Accounts provided by DENT Benefits.
You can also contact one of our health insurance experts today for a complimentary consultation on your current coverage.
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.