How Much Does Health Insurance Cost in Canada (Average Rates)

How much does health insurance cost in Canada?

Private health insurance costs vary depending on your age, location, and the level of coverage you choose. Most individual health insurance plans cost between $75 and $150 per month on average.

We’ll break this down further using real starting rates from PolicyMe’s Economic health insurance plans. 

What we mean by “health insurance”

When we say health insurance, we’re talking about private plans. Not the government-funded care you automatically get through your province. This includes coverage for things public healthcare doesn’t fully pay for, like prescriptions, dental, vision care, therapy, and more.

What factors influence the cost of health insurance premiums?

What you pay depends on your personal profile and what kind of coverage you’re looking for. A few key factors will impact how much you pay for private health insurance:

• Your age: The older you are, the higher your premium — especially if you’re over 50.
• Where you live: Rates can vary slightly by province based on regional healthcare costs.
• Your coverage level: More coverage (like adding mental health or comprehensive prescription drugs) means higher premiums.

Cost of health insurance by province

Health insurance costs can vary depending on where you live. Differences in provincial healthcare systems and pricing regulations influence the cost of your monthly premiums.

We’ve laid out the average cost for PolicyMe’s Economic plan in each province, for applicants aged 21-44. These give you a clear, apples-to-apples comparison of what basic private health insurance might cost across Canada.

Cost of health insurance by age

Age is one of the biggest factors that impacts your health insurance premium. The older you are, the more you’re likely to pay even for the same level of coverage.

Below, we’ve laid out starting monthly rates for PolicyMe’s Economic plan in Alberta by age group, so you can get a sense of how pricing changes over time.

Is private health insurance worth it for me?

Private health insurance is not a one-size-fits-all decision. To figure out if it’s worth paying for, compare your current healthcare spending with what you’d pay for a plan. Then think about what kind of coverage would actually make your life easier.

Here’s how to break it down:

• Add up your average healthcare costs: Look at what you spend on things like prescription drugs, dental care, glasses, or therapy. Include anything you skipped because it was too pricey. In Canada, prescription spending for private plans has gone up 12.9% since 2023.
• Compare that to the annual cost of a plan: Multiply the monthly premium by 12. If your plan costs $100 a month, that’s $1,200 a year.
• Factor in what the plan would cover: Most plans reimburse between 70-100% of eligible costs. If your expected expenses are higher than the plan’s cost, that’s a net gain.
• Think about what you might avoid without coverage: Would you delay care or skip treatments if you had to pay full price? That can lead to bigger problems and bigger bills down the road.
• Consider the stability a plan gives you: Even if you don’t save money every year, having coverage gives you predictable costs and a buffer against surprise health expenses.

The value of a health plan is not just about saving money. It’s about making care more accessible, staying ahead of issues, and having fewer financial surprises when life throws a curveball. ​​In fact, Canadians claimed more than $32.5 billion in supplementary health benefits in 2022 alone, showing just how often private plans are used for everyday care.

What to compare when looking at quotes from different insurance providers

Not all health coverage plans are priced the same, and the lowest premium doesn’t always mean the best value. When comparing health insurance quotes from different companies, it’s important to look beyond just the monthly rate. The real cost depends on what’s covered, how much you’ll get back, and what you’ll pay out of pocket when you actually use the plan. To get real value from your premium, compare these factors:

Monthly premium

This is the upfront cost you pay every month to stay insured. A lower premium might seem cheaper, but it often comes with less coverage or higher out-of-pocket costs.

Deductible

The amount you have to pay before your plan starts reimbursing you. A plan with a lower monthly rate might come with a higher deductible, which means you’ll pay more out-of-pocket if you need medical care.

Co-pays or co-insurance

Some plans require you to cover a portion of each claim. For example, you might pay 20% of the cost for a massage or eye exam, while the insurance company covers the rest.

Maximum per claim or per service

Many plans set a cap on how much they’ll reimburse for specific services like dental work, glasses, or therapy. Check these carefully; they can make a big difference in the real value of a lower-cost plan.

Annual & lifetime coverage limits

Some health insurance companies set a maximum on what they’ll pay out in a year, or across your lifetime. Higher limits generally mean higher premiums but also better protection long-term.

Waiting periods

Some health benefits (like dental, vision, or major services)  might not kick in right away. A waiting period could be a few months to a year, depending on the service. This can impact when you actually start getting value from your plan.

What the insurance covers

Compare the exclusions across different quotes — like dental, vision, prescriptions, mental health, and paramedical care. Some lower-priced plans exclude higher-cost services altogether.

How much do you save with private health insurance coverage?

Private health insurance can help you save money, but only if you're using it regularly. The amount you save depends on what your plan covers, how often you need care, and what those services would cost you out of pocket.

Here’s where savings usually come from:

• Prescription medications: Even with provincial coverage, many people still pay out of pocket. A plan that covers $70 or more of drug costs can save you hundreds per year if you take regular medication.
  
  
• Dental care: A basic cleaning can cost around $150. Two visits a year means $300. If you need a filling or x-ray, the total jumps quickly. Most private plans cover 80 to 100% of routine dental care.
  
  
• Vision care: Glasses or contacts often cost between $200 and $400 every couple of years. A plan with vision coverage helps bring that number down.
  
  
• Paramedical services: This includes physiotherapy, massages, chiropractic care, or counselling. If your plan covers 80% per visit, your savings can grow fast — especially if you use these services more than a few times a year.
  
  
• More predictable costs: Even if what you claim in a year equals your premium, you’re swapping unpredictable bills for one steady monthly cost. That kind of consistency can reduce financial stress.

Saving money is one thing — being able to afford care when you need it is another. 56% of Canadians are delaying or skipping health appointments because of cost.

A private health insurance plan can take the pressure off, so you’re not forced to choose between your budget and your well-being.

Want to see it for yourself? Add up what you spent on medical services last year. Then compare it to the cost of a plan and what would have been reimbursed. In many cases, the savings are clear. And even when they’re not, the value is knowing care is within reach when you need it.

Cutting the cost of health insurance through tax deductions

Private insurance might feel like a big expense, but some of that cost could come back to you at tax time. In Canada, you may be able to claim the premiums you pay for private health insurance as a medical expense on your tax return.

If your plan includes things like prescription drug coverage, dental care, vision, or paramedical services, the premiums often qualify under the CRA’s list of eligible medical expenses. You can claim these expenses for yourself, your spouse or common-law partner, and your children under 18.

To get the tax credit, your total medical expenses for the year need to exceed either three percent of your net income or a fixed amount set by the CRA — whichever is lower. For the 2024 tax year, that fixed amount is $2,635. You’ll only get credit for the portion that goes over this threshold. That means the more you’ve spent on your healthcare needs in a year, the more helpful the credit becomes.

Note that this is a non-refundable tax credit. It won’t give you a refund, but it can reduce the amount of tax you owe. So while it won’t wipe out the cost of your premiums, it can take the edge off, especially when combined with other eligible health expenses.

Bottom line: private health insurance costs

• Health insurance costs can add up, but they can also prevent even bigger out-of-pocket surprises — especially if you’re using services like dental, prescriptions, or physio regularly.
• If you're comparing quotes, focus on total value, not just the monthly rate. Small details like claim limits and waiting periods can make a big difference.
• The best health insurance plan is one that fits your needs, your budget, and your stage of life — not just the one with the lowest premium.

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^{The health insurance premiums featured in this article are based on sample rates from PolicyMe’s Economic plan and are intended for general informational purposes only. Actual rates may vary depending on your age, location, health status, and other underwriting factors.}