Self-Employed Health Insurance in Canada (2026 Guide)

TL;DR: Self-employed health insurance options for Canadians

Private health insurance is often a good way for self-employed Canadians to supplement provincial healthcare coverage and pay for necessary services like dental care, prescription medication, and mental health support. 

Provincial plans don’t typically cover prescription medication, dental and vision care, mental health services, or paramedical practitioners like chiropractors and physiotherapists. If you don’t have access to supplemental health benefits through an employer, private healthcare plans can fill the gap.

The best health insurance plans for self-employed Canadians

The best self-employed health and dental plans for freelancers, entrepreneurs, and small business owners have several basic features: 

• They offer competitive premiums: All plans recommended below are priced under the industry average for their coverage tier (basic, mid-tier, or premium). 
• They build in flexibility: We prioritized plans with no drug deductibles, no waiting periods on key coverage, and no per-visit or per-profession maximums. 
• They adapt to your needs: The best plans for self-employed workers allow you to mix and match coverage options based on the services you actually use, not just a pre-packaged suite of coverage. 

Basic health and dental plans

^{* Premiums reflect the approximate monthly cost for an 18-year-old adult living in Canada.}

Mid-tier and premium health and dental plans

^{* Premiums reflect the approximate monthly cost for an 18-year-old adult living in Canada.}

Is private health insurance worth it if you’re self-employed? 

Private health insurance may be a worthwhile investment for self-employed workers who have routine healthcare costs that public programs don’t cover.

Ask yourself

• Do you take any regular prescription medications for chronic conditions that aren’t covered by a provincial drug program?
• Do you routinely pay out of pocket for dental or vision care?
• Do you want affordable access to mental health care?

While many self-employed workers in Canada say they love being their own boss and having flexible schedules, a third are concerned about inadequate health coverage and rising costs, according to a 2025 survey. 

Private self-employed health insurance can fill the gaps left by provincial coverage and offer peace of mind—especially when it comes to managing routine health expenses, accessing timely care, and protecting your income in the event of illness or injury.

Private health care vs. government health care

In Canada, there are two healthcare tiers: government health care administered by the provinces, and private health care that individuals can secure on their own.

Government healthcare coverage, typically referred to as “universal health care,” primarily focuses on medically necessary care, including things like doctor’s visits, blood tests, emergency surgeries, and illnesses that require hospitalization. 

Universal health care typically does not cover dental visits, vision care, and paramedical services like counselling services, chiropractic care, and physiotherapy.

There are exceptions, though: Canadians who meet certain income thresholds may qualify for government-covered dental and prescription drug plans. For example, the Canada Dental Care Plan (CDCP) covers some dental care costs for Canadians whose adjusted family net income is less than $90,000 per year (and meets other eligibility criteria). 

It’s important to understand that government and private health care are designed to work together. While provincial plans cover essential and emergency services, private plans help pay for everyday health needs to offer more complete protection and flexibility.

Does government healthcare ever cover dental, vision, mental health, or paramedical services?

In general, provincial healthcare programs won’t cover dental, vision, mental health, or paramedical services. However, some provinces offer limited coverage in these areas, typically to special groups such as:

• Children: It’s common for some provinces to offer limited routine dental or vision care for children.
• Adults with disabilities: Some disabilities and medical conditions may qualify you for provincial coverage for treatment related to your condition, such as covered eye exams for adults with specific vision disorders.
• Seniors: A few provinces may extend additional coverage options to people aged 65 and older, particularly for vision or dental care.
• Low-income residents: If you’re under a certain income threshold or enrolled in social services, you and your dependents could qualify for additional provincial coverage.

The bottom line: private coverage can complement provincial health insurance 

To qualify for government support for drug, dental, and vision care, your income typically needs to fall below a low threshold. If you earn more than that threshold as a self-employed individual or small business owner, you’ll only receive coverage for essential medical services through your provincial health plan.

Self-employed health insurance plans through private insurers work hand-in-hand with government programs, filling the gaps to provide more comprehensive coverage.

How much does self-employed health insurance cost? 

Self-employed health insurance is surprisingly affordable for most Canadians. Average monthly premiums for self-employed adults range from about $100 to $150, and PolicyMe plans start as low as $94 per month in some provinces. 

The cost of your premiums will vary depending on factors like your age, where you live, and the type of coverage you purchase. Some basic health and dental insurance plans may cost as little as $75 per month for minimal coverage, while a family plan with coverage for advanced services like orthodontics may cost over $200 per month. 

Health insurance cost by age

Generally speaking, the older you are, the more you’ll pay for health and dental coverage. Here are some starting monthly rates for PolicyMe’s Classic plan based on your age.

^{The table displays the approximate average monthly costs of applicants living in Canada. “Children” refers to newborn infants and “Seniors” to 60-year-old adults. “Adults” refers to the age group with the starting age closest to 18, and “Older adults” refers to the age group immediately following “Adults.” Although we strive to ensure accuracy, PolicyMe cannot guarantee the validity of third-party data.}

Health insurance by province 

Due to differences in provincial healthcare programs and pricing regulations, the province or territory you reside in can also impact your premiums. Ontario and Quebec typically have the highest personal health insurance premiums, while Saskatchewan’s healthcare costs are among the lowest. 

Here’s the cost of PolicyMe’s Classic plan in each province for applicants aged 21-44.

Health insurance cost by coverage amount

One of the most significant factors that will affect your premiums is the coverage you choose. The more your insurance plan covers, the more you’ll typically pay per month.

On the lower end of the spectrum, you’ll find basic plans that offer a higher copay (the amount you pay before insurance kicks in) and lower annual limits. These will have a lower monthly cost than plans with higher reimbursement and limits, but your out-of-pocket costs could make them more expensive in the long run.
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Do the math

If you’re comparing health insurance plans, take the time to calculate your total coverage versus total payments.

1. Total coverage: Add up the total amount your plan would cover in any given year for services you routinely use (e.g., prescriptions, dental care, eye exams).
2. Out-of-pocket burden: Calculate your total co-pay—that is, the portion of the cost of care that you’d continue to pay out of pocket.
3. Annual premium: Calculate your annual premium (i.e., your monthly premium times 12).

By comparing these three numbers, you can determine which plan gives you the maximum coverage at the best price.

What’s the best affordable health insurance for freelancers?

The best health insurance for your budget depends on your individual care needs. PolicyMe’s lowest-tier plan, Economy, starts as low as $78 per month for those aged 21 to 44. 

If you have a tight budget, consider prioritizing coverage for drugs and emergency care over extras like vision and dental. This type of coverage can help with larger, unexpected expenses, while routine appointments with your eye doctor or dentist might be easier to budget for out of pocket.

While spending less on your healthcare coverage might help your monthly budget, it usually includes less coverage and could end up costing thousands in a one-time expense. When considering a plan, review its annual coverage and limits, not just the cost, to understand what you’re actually getting for your money.

Is health insurance tax deductible for self-employed Canadians? 

Generally speaking, premiums for private health plans are considered eligible medical expenses by the Canada Revenue Agency (CRA). If you’re self-employed, you can claim your health insurance costs on your income tax return if 90% or more of the premiums relate to medical expenses that are eligible under the Medical Expense Tax Credit.

Health insurance for entrepreneurs

As an entrepreneur, your business’s structure determines whether you can deduct premiums for private health plans.

As a sole proprietor, you may be eligible to deduct your premiums as a PHSP business expense. However, you must meet one of the following conditions regarding your income:
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• More than 50% of your net income comes from your self-employment earnings; or 
• Less than $10,000 of your income comes from sources other than self-employment.

If you’re incorporated, you can usually set up a PHSP for yourself as an employee and deduct those premiums. Corporations as small as a single employee may also be eligible for a Health Savings Account (HSA) to cover medical expenses not included in your PHSP.

If you’re unsure about your business’s structure or whether you can deduct premiums on your taxes, consult a tax professional for guidance.

Step-by-step guide to picking the right health insurance plan 

Picking the right health insurance plan can feel complicated—but it doesn’t have to be. We’ll walk you through how to evaluate your needs, compare plans, and choose coverage that works for your lifestyle and budget.

Step 1: Assess your coverage needs

Start by ensuring you understand what your provincial insurance program covers—and what it doesn’t. Then, consider the services that you currently need, or are likely to need in the near future. Common needs include prescription drug coverage, dental and vision care, and paramedical services like therapy and chiropractic.

Step 2: Determine your budget

How much can you realistically spend each month? Basic plans are typically quite affordable, but costs will climb with add-ons or higher tiers with more coverage. Remember that your insurance plan won’t cover everything; most reimburse 60-80% and require you to pay 20-40%.

Step 3: Compare plans and coverage

Most insurance companies offer very basic health and dental plans, as well as more comprehensive options that include vision, mental health, and travel insurance. Some companies offer critical illness and disability add-ons, too.

Compare offerings from multiple insurers to find the options that work best for you.

Step 4: Consider exclusions and limitations

Be sure to review each plan’s details carefully. Pay special attention to:

• Annual limits
• Waiting periods
• Rules around pre-existing conditions

Step 5: Get quotes and apply

Aim to get health insurance quotes from at least three different insurance companies to ensure you’re not overpaying for coverage. Some companies allow you to get quotes online while others will require you to speak to an agent by phone.

With PolicyMe, you can get a quote online in minutes—and if you want to purchase coverage, you can complete the entire process digitally without any paperwork, phone calls, or medical exams for most applicants.

Step 6: Reassess your needs annually

Your health insurance plan will probably renew each year unless you cancel it—but it’s a good idea to revisit your policy each year to ensure it still fits your needs. If you’ve had a major life change, are using a particular service more (or not at all), or find a better rate, you can always re-shop for coverage and change plans.

Here’s what coverage we recommend for these self-employed Canadians 

The right health insurance coverage for your self-employed friend may not be the right one for you. That’s because self-employed health insurance must be tailored to your unique lifestyle and needs. We’ve created a few profiles to help you see how coverage may vary depending on your age, budget, family situation, and health priorities.

Sarah, 32

Details: Freelance interior designer, single, works from home

Needs: Occasional dental care, vision coverage, and mental health support

Budget: $80/month

Recommended coverage:

• Basic health & dental plan with vision and mental health support
• Prescription drug coverage for occasional needs
• Virtual care access for convenience

Here’s why: Sarah is young and healthy but wants peace of mind for everyday health needs like eye exams, dental cleanings, and therapy. A basic extended health plan helps keep her costs down while ensuring coverage for those must-haves.

Matt, 46

Details: Self-employed contractor, married with two kids

Needs: Family dental, prescriptions, physiotherapy, and protection if he gets injured

Budget: $200/month

Recommended coverage:

• Comprehensive family health and dental plan
• Add-ons for paramedical services like physio and chiropractic care
• Critical illness or disability coverage

Here’s why: Matt does physical work and has a family to support. This coverage helps keep him healthy and moving well, and also offers financial protection in the event of an injury that keeps him away from work.

FAQ: Self-employed health insurance