Insurance helps you secure your finances as a Canadian immigrant

Insurance helps you secure your finances as a Canadian immigrant
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Insurance helps you secure your finances as a Canadian immigrant

One of the most crucial tasks to do after landing in Canada is to get your finances in order, which includes getting insurance so as to safeguard yourself against any unforeseen financial emergencies. In this article, we have tried to give you more insight into the insurance process related to your life, health, home, and vehicle.

The process to get health insurance as a new immigrant to Canada.

One of the best things to consider about Canada is the accessibility to the country’s world-class health care system. All the Canadian residents can avail themselves of public health care, which means they are not required to pay anything as their health care costs. However, in order to seek those health care benefits as a Canadian resident, you are required to opt for health insurance.

Every Canadian province and territory have their own health insurance plan; furthermore, coverage for these plans can vary depending upon the area. Furthermore, some provinces require new immigrants to wait for around three months to receive coverage under the health insurance plan. In case you are moving to a province or territory which requires you to wait for up to three months to receive coverage, then you will need to get a private health insurance plan for coverage during that gap. An important thing to note here is that all Canadian provinces and territories offer free emergency medical help even if anyone does not have a health insurance card. In case of any medical emergency, you can visit the nearest hospital.

You can look further into the health insurance plans offered in your new area as per your requirements by visiting the provincial government website.

All drivers are required to get car insurance in Canada.

Car insurance will offer you protection in the circumstance of a car accident/damage. Car insurance is required in Canada for anybody who owns a vehicle, and rates differ depending upon the area, insurer, and driver.

It may be better for you to research insurance options before you go shopping for a car, as cars that have better ratings have less expensive insurance plans. The Insurance Bureau of Canada helps you in checking the rating of a car. Furthermore, keeping a good credit rating will also result in a significant cost reduction of the insurance policy in some areas.

You may find it tempting to get the cheapest obligatory insurance policy available. For some areas in Canada, the minimum liability insurance required is $200,000, although $2 million of coverage is a safer bet. You also might want to take into consideration the cost of an accident, in case you are at fault, as in this situation, you will need sufficient insurance that covers not only other person’s vehicle repair and health expenses but also be able to cover any property damages caused due to the accident. If the cost of damage caused exceeds the liability amount, then you will need to pay the balance of the settlement amount out of your pocket, which can be a huge sum of money.

Getting home insurance as a Canadian newcomer

If you are purchasing a new home or renting one, in both cases, you will need to get insurance to protect your possession against any risks of theft or damage. Unlike car insurance, tenant’s or home insurance is not a mandatory one; however, a majority of mortgage lenders need you to get insurance before they approve a loan.

Home insurance is an added expense; thus, you really need to think if you actually need one, especially when the new home purchase is in good condition. Nonetheless, it is not a bad thought to get home insurance as a safety guard; though, we still hope that you never need one. Even if you would not need insurance to repair home damage, you may want to consider these frequent mishaps that can be covered by home insurance:

  • A visitor hurts their ankle after stumbling over an unsteady surface in the lawn. Their medical expenses can be covered by your insurance and will protect you from any subsequent litigation.
  • Your personal valuables such as a laptop and jewelry are stolen from your vehicle’s luggage. Even if the theft occurs far away from your property, your home insurance will cover the vehicle theft.
  • An ice storm knocks out your electricity for a week, causing the food in your fridge and freezer to deteriorate. There are a few insurance providers that cover food losses that occurred due to power cuts.

In case you are renting a place, then you need to get a tenant’s insurance to receive coverage against the similar situations mentioned above. Even if you are not the owner of the place, your insurance will offer protection to your property and finances in case of any damages.

Get the protection with life insurance.

Life insurance is another optional insurance, but this is another important insurance that you should consider getting as a new immigrant to Canada.

It does not matter if you are single, married, or divorced; life insurance will protect your loved ones from financial hardships after your death, including:

  • Funeral costsFuture education costs for your children
  • Student debts: If your parents are specified as beneficiaries on your life insurance policy, your insurance policy could pay the loans that your parents took out for your higher education.

In this insurance category, there are two types as below:

  • Term life insurance: A term life insurance offers you protection for a defined period, say 10 or 20 years. 
  • Permanent life insurance: Whole life insurance is much costly compared to term life insurance, but it offers protection for the whole duration of your life without any limitations.

Money received from either type of insurance is tax-free and is paid in a lump sum. Immigrating to a new country can be thrilling and stressful simultaneously. It is always better to stay prepared for everything in advance and seek experience advice whenever required so that you can enjoy this new chapter of your life to the fullest.

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