Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada. Knowing what types of insurance are available before you arrive is smart financial planning that can save you money and build security.  For example, the first type of insurance newcomers need to understand is renters insurance (or tenant insurance). Most landlords require it. And then there are health insurance plans. This guide can help you find the right insurance for your new life in Canada.

Why do newcomers need insurance?

Insurance is one way that newcomers to Canada can manage risks. Things can go wrong. Accidents happen. Floods happen. And you don’t want to start over financially from scratch. So, when you purchase insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee (known as the premium). Insurance companies invest the funds securely, grow, and pay out when there’s a claim.

How are insurance brokers and agents different?

An insurance broker is not the same thing as an insurance agent. Brokers know how insurance policies work and can access more options than an agent. This lets them pick the best rates for the coverage you need from many insurance companies.

What are insurance premiums?

An insurance premium is the amount you or your business pays for an insurance policy. Insurance premiums pay for policies that cover things like healthcare, auto, rental, home, and life insurance.

Why do I need risk insurance?

Risk insurance protects your home and property from “risks and perils.” It covers property damage or loss from accidents or unforeseeable incidents (flood, sewer backup, frozen pipes, etc.)

Travel medical health insurance

Canada is renowned for its healthcare system, and quality healthcare is one of the reasons newcomers seek to build a life here. Government health insurance programs like the Ontario Health Insurance Plan (OHIP) and Alberta Health Care Insurance Plan (AHCIP) let you apply for coverage once you arrive in Canada and establish your permanent residency.

Buying travel medical health insurance to cover unexpected medical expenses before you and your family can join a government health insurance program is smart. Without it, you could end up paying significant out-of-pocket costs. 

What’s the difference between provincial health plans and medical insurance?

Once you arrive in Canada and establish your permanent residency government health insurance programs allow you to apply for coverage. But, in some provinces, there is a wait period before you are eligible for government health insurance. That’s where private insurance coverage is a good idea for both temporary visitors to Canada and people on the path to becoming permanent residents and Canadian citizens.

When purchasing visitor travel insurance, there’s no one-size-fits-all solution. As a newcomer to Canada, you must understand your options and select the right coverage based on key factors like age, dependants, health status, and deductible preference.

Buying travel medical health insurance can be challenging for newcomers and international students. It requires navigating the process especially if you have age-related risk factors and pre-existing health conditions. Finding the right coverage is important. It’s vital to know the basic requirements you or a loved one need before you buy a travel medical health policy.

Who is eligible for visitor to Canada insurance?

Visitors to Canada Travel insurance isn’t just for visitors! It’s also beneficial to the following individuals:

• New immigrants waiting for provincial healthcare plan to kick in
• Canadian citizens who have recently returned to Canada after living abroad (you may need emergency travel medical insurance for a few months until your provincial healthcare plan coverage takes effect)
• Visitors to Canada on a working visa.

Recently, Dave Frattini, Managing Partner of Prepare for Canada and Rentals for Newcomers, sat down with Robin Ingle, CEO of Ingle International Insurance, to discuss the importance of Travel Medical Health insurance for immigrants arriving in Canada. 

In their discussion, Ingle, whose mother was an immigrant, explained the Canadian healthcare system, how Travel Medical Health insurance for immigrants works, and why it’s important for newcomers. He emphasized the social-based nature of Canada’s healthcare system and the need for newcomers to buy medical insurance to avoid unexpected expenses. Ingle is an acclaimed specialist in special risk insurance.

Myths About Healthcare in Canada

Ingle provided valuable insights for immigrants on Travel Medical Health insurance and why it’s important to understand coverage levels and policy information. This can help newcomers who do not have provincial health insurance when they first arrive avoid unexpected and high medical costs.

Their discussion explains why newcomers to Canada (and international students) should prepare for healthcare and insurance costs before arriving in Canada. Ingle also dispelled myths about Travel Medical Health insurance.

You’ve been helping newcomers with insurance for over 50 years. Can you share your company’s history?

Robin Ingle (RI): I come from an immigrant family. Two hundred years ago, my father’s family moved from Pennsylvania to Canada, and my mother moved from Finland to Canada for a better life with her family. That’s how they met.

After World War II, when Canada started receiving an influx of immigrants, my parents focused on health insurance for newcomers. That was before there was a social health care system in Canada. They concentrated on helping people in the way that Prepare for Canada helps newcomers acclimate to Canada, find housing, and the biggest part, health insurance.

Today, we work worldwide. Providing services and coverage to new newcomers is in our DNA.

Can you give an overview of how Canadian healthcare works?

RI: There are misunderstandings about the Canadian healthcare system. It is a social system, but it only applies to permanent residents in Canada who are part of a provincial government health insurance plan. If you do not have PR status, you’re considered a non-resident. If you are getting your permanent residency but haven’t applied for your provincial health plan, you’re considered a non-resident until you join the provincial plan.

In Canada, the costs of healthcare services for non-residents are high. Visiting a clinic can cost anywhere between $100 and $200. Going to a hospital and emergency room can cost anywhere from $2,000 to $5,000. If you have to stay in the hospital on an inpatient basis, it can be $3,000 or more per day.

Major hospitals charge $17,000 or more for a day’s stay in an intensive care unit. This is very expensive for people outside the provincial government health system.

An important thing people need to understand is that healthcare providers in Canada are private. The provincial government is the biggest payer and manager of the government health system. A private doctor bills the government, and the government pays the largest portion of their bills (only a small amount of patients are non-residents). The government pays the physicians and the hospitals. So it’s a slightly different system than in the UK or Europe.

Why should newcomers buy Travel Medical Health insurance?

RI: The cost is not high. For example, for a family, you will pay insurance for three months. You might pay upwards of $500 for three months to cover the waiting period before you get onto a provincial health plan. That would cover inpatient hospitalization, outpatient care, and emergency visits to a clinic.

Most newcomers who have come through the immigration process are healthy, so the cost is reasonable and in line with the type of risk.

You need to be prepared. You pay a small amount for the coverage and know you and your family will be covered if something happens, like an accident. It’s important to stress that any medical incident can be costly without provincial or private healthcare.

A while ago, my sister fell and broke her hip and had to go to the hospital. That was an accident. You could get the flu, or a bee sting and need to go to the hospital because of an anaphylactic shock. Insurance covers hospital visits under these plans. 

When should newcomers purchase Travel Medical Insurance?

RI: People can purchase insurance before or after they arrive. However, depending on the coverage, there is a 48-hour waiting period when you arrive. This means you can’t claim for a sickness within 48 hours of buying it. 

Who should purchase Travel Medical Health insurance? 

RI: Newcomers do not want to begin their lives here with extra bills. Health insurance coverage is worth a small amount of money for anybody not covered under a provincial government health plan.

Also, Canadians returning from working, studying, or living outside Canada for more than 183 days must reapply for their provincial government health plan, depending on the province. And they have to wait up to three months to get that coverage. So insurance is not just for newcomers. It’s also for those who have been out of the system for some time.  

Who is eligible for Travel Medical Health insurance?

RI: Anybody coming into Canada who is a non-resident, a newcomer, or anybody applying for permanent residency. Or anyone going through the immigration process as a refugee. Anybody in these categories considered a newcomer can apply.

First and second-generation Canadians who are already citizens often buy coverage when their families visit. They often don’t think about this because they’re now Canadian citizens. They don’t realize how much medical costs can be for visitors or grandparents visiting.

You also have new rules, like the Super Visa, where you can bring an older relative over for a period of time if you’re a new Canadian. So, you need Super Visa visitor insurance. You need a minimum coverage of $100,000 for 12 months. There are different categories, but anybody visiting who’s not covered should get coverage. 

Are there groups that are not eligible for Travel Medical Health? 

RI: There are no ineligible groups. If you do not have coverage under a provincial government plan, you should get it. And, if you have a pre-existing medical condition, you need to ask questions because the plans may not cover that medical condition.

If you’re (a visitor) taking medication for a pre-existing heart condition, for example, and go to the hospital and try to buy the coverage, you will not be eligible for most plans. 

What should newcomers look for in a Travel Medical Health Insurance policy?

RI: Often, newcomers or Canadians bring relatives over and must buy visitor insurance or provide coverage before they enter a provincial health plan. They’ll buy the cheapest product, which means less coverage. I advise that they buy the mid-level coverage. With low coverage, you can get $100,000 or $50,000 worth, but that can disappear quickly. If you’re in the hospital for even a few days, it can cost $50,000, and the low-coverage insurance won’t cover anything else.

Choose between $350,000 and $500,000 worth of coverage. Make sure you’re covered for the full period you need. Ask for additional coverage if you need it.  

Travel medical health insurance often which goes by different names. What should newcomers look for to ensure their travel medical health needs are covered? 

RI: Here, it’s called Visitor to Canada insurance. Be sure you read the information provided and understand what is covered. Financial literacy is important, especially with insurance and financial products.

Ensure the insurance covers you and your family for doctor visits and hospitalization if needed. If you need medication for an emergency, ensure it is covered. For newcomers, that would be Super Visa insurance.

What’s the difference between travel medical health insurance and travel insurance? 

RI: Travel insurance in Canada draws a good distinction between the two.

Travel insurance in the Canadian market is traditionally for a Canadian citizen travelling outside of their home province in Canada. Travel insurance within Canada covers the difference between what the province and the insurance will cover. So, it’s a different level of coverage.

Also, when people leave their country of origin or their original country of residence, they often buy local coverage, which may not have the same level of coverage they will need in the Canadian market. So make sure you compare the products. We’ll provide background information if anybody has questions.

Can you explain the relationship between Ingle Insurance and Aha, your broker of choice for Prepare for Canada?

RI: Aha is a great property and casualty organization providing automobile, home, and business insurance access. We like how they do business, and we use their platform to compare products. We fit well because we have access to our products, and all major companies to get the right product to fit the individual’s needs. That makes a big difference. Plus, Aha provides information to help individuals understand what kind of coverage they need and how to get it. We do exactly the same thing. 

Buying tenant insurance is essential for international students renting, studying, and working in Canada.

Having tenant Insurance can save you from unforeseen costs and protect your possessions, and your school may even require it (college or university if you’re living on-campus).

Landlords may demand tenant insurance

Likewise, if you’re renting off-campus, your landlord may demand it as part of the rental agreement. 

So, what is student tenant insurance, what does it do, and how do you get it?

Tenant Insurance covers your personal property, liability, and additional living expenses if, for example, you must move temporarily due to an event such as a flood or fire in your apartment or building.

Tenant insurance protects students

While your landlord will have insurance, this will only cover the building itself; for example, it does not insure your belongings or cover your liability in case of damage or injury. 

So tenant insurance, also known as renters insurance, gives you security and protection – in other words, peace of mind. 

7 things international students must know about tenant insurance

• 1. YOUR STUFF
• Tenant insurance covers your personal belongings within your apartment. The insurance helps pay for any loss or damage to your personal property (and includes items damaged or stolen).  Your stuff – such as electronics, phones, laptops, gaming systems, and jewelry is expensive and valuable. They are also prime targets for thieves.
• 2. LANDLORDS LIKE IT
• Landlords expect you to have tenant insurance. They will ask for a copy of your policy before you move in.

• 3. SO DO SCHOOLS
• If you live on campus in student housing, your school (university or college) will likely insist you have renters’ insurance. The school is your landlord. Most schools will detail in the residency agreement that they are not liable for theft or damage to student property.

• 4. EMERGENCIES HAPPEN
• Tenant insurance ensures that if you can’t live in your apartment due to a covered emergency such as a fire, you will get financial assistance for temporary accommodation (like a hotel or Airbnb) and food.

• 5. ACCIDENTS HAPPEN, TOO  
• Count on it, and some are costly. Personal Liability coverage in your tenant insurance policy protects you if your landlord holds you responsible for property damage or personal injury to someone at your apartment. Also, parties and sharing student accommodations with others bring visitors, including some who may cause damage or steal your stuff.  You could be held responsible if they damage your home or injure someone.

• 6. IT IS NOT THE LAW
• Legally, you do not require tenant insurance in Canada. No law makes renters purchase tenant insurance coverage, but remember that it protects you and provides security and peace of mind. And, of course, your landlord may obligate you to buy it according to the terms of your lease agreement with your landlord.

• 7. IT IS AFFORDABLE
• Given how affordable contents insurance is for renters in Canada, it makes sense for students to insure their valuables, particularly those living so far from home.

How do international students get insurance?

Contact an insurance company and talk to the broker about renters’ insurance for university and college students. They have the knowledge and expertise to guide you through this process. Here’s a handy link where you can get a quote online.

Remember, when you decide to get tenant insurance, read the agreement carefully to know what is covered (and what is not!). Be sure to share the agreement with your landlord.

Also, it’s always a good idea when looking to rent a home in Canada to inform a prospective landlord that you intend to get tenant insurance. This shows landlords you will be a responsible tenant.