When Does Health Insurance Expire After Leaving a Job in Canada?

How long do health & dental benefits last after leaving a job?

In Canada, health and dental benefits from your employer don’t always end the moment you walk out the door, but they don’t last forever either. In most cases, your coverage ends on your last official day of work, at the end of the pay period, or at the end of the month depending on your employer’s policy and insurance provider. 

That said, your health insurance coverage could end immediately if you’re fired without notice, or it may continue for a short period if you’re laid off. Some employers may also extend your benefits through your statutory notice period, so it’s wise to ask your human resources representative for specifics. 

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What to check immediately after leaving a job

• Your official termination date and whether benefits continue to month-end
• Deadline to submit outstanding claims
• Any grace period for coverage conversion or continuation through the insurance provider, as some plans allow you to switch to private coverage without medical underwriting within a specified period

How to keep health & dental coverage after leaving a job

Losing your workplace benefits doesn’t mean you have to go without protection. In fact, maintaining health and dental coverage can help you avoid out-of-pocket costs for prescription drugs, ambulance services, dental care, vision care, and paramedical treatments (like massages). If your family members were also covered by your plan, it’s equally important to ensure they remain protected. 

Here are the top three ways you can maintain health and dental coverage after leaving a job in Canada: 

• Add yourself to a spouse or partner’s plan
• Rely on your provincial health plan (but there are limits)
• Convert your group benefits plan to an individual health insurance plan, or apply for private health and dental coverage 

Add yourself to a spouse or partner’s plan

If you’re married or in a common-law relationship, you may be eligible to join your spouse or partner’s workplace health and dental plan as a dependent. Most group insurers recognize loss of benefits as a qualifying life event, meaning you don’t have to wait for the next open enrollment period. 

Know what Provincial health plans do (and don’t) cover

Your provincial health plan (like OHIP, MSP, or AHCIP) will remain active regardless of your employment status, but it only covers basic medical services such as hospital visits, doctor appointments, and essential surgeries. 

To fill these gaps after leaving your job and avoid paying for these services out of pocket, you’ll need private coverage or a conversion plan from your former group benefits insurance provider. 

Apply for private health & dental within 90 days of losing group benefits

If the options above still leave you inadequately covered, you should consider applying for private health and dental insurance right away. 

Many insurers allow you to convert your workplace plan to an individual plan without medical underwriting if you apply within the required timeline; typically 31 to 90 days, depending on the benefit type. These conversion windows help you avoid gaps in coverage and are especially useful if your next job has a waiting period for benefits. 

Missed the 90-day deadline? You still have options. While you may no longer qualify for guaranteed acceptance or preferred rates, you can still compare private insurance plans and apply for coverage that suits your health needs and budget moving forward.

Some providers, including PolicyMe, offer health and dental plans specifically designed for Canadians who have recently lost their workplace benefits. Here’s a rundown of PolicyMe’s Protect plan; a streamlined solution if you’ve recently lost your workplace benefits:

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• Application timeline: You have up to 90 days to apply after your group coverage ends.
• Coverage start date: You can secure coverage before your benefits expire and set a future start date up to 30 days ahead, avoiding a gap in protection.
• Benefits: PolicyMe Protect plans offer higher coverage limits than many off-the-shelf products and are designed to make the transition easier. 

What health insurance means in Canada: Government vs. employer benefits 

In Canada, government health insurance refers to your provincial or territorial plan (like OHIP in Ontario), whereas employee-sponsored health insurance refers to additional workplace benefits that cover services not included in government plans. 

Every province and territory in Canada offers public health coverage for medically necessary services, including:

• Doctor visits and consultations
• Emergency room services and surgeries
• Hospital stays and diagnostic tests

Similar to private health insurance plans, employer-sponsored plans are designed to fill the gaps in provincial coverage. These plans may include:

• Prescription drug coverage
• Basic and major dental care
• Vision care (eye exams, glasses, lenses)
• Paramedical services (e.g. physiotherapy, massage, chiropractic)
• Semi-private or private hospital rooms
• Mental health support

Take Note

Coverage details for group benefits, such as reimbursements and included services, are dependent on your employer and insurer.

At a glance, here are the major differences between provincial and employee health insurance coverage: 

As shown in the table above, employer group benefits plans provide coverage for medical expenses that aren’t included in provincial health care. Whether through resignation, layoff, or termination; if you’re leaving a job that provides health and dental benefits, it’s a good idea to convert your insurance policy into an individual plan or explore new private health insurance options to avoid gaps in coverage. 

Checklist for getting off employee benefits

Leaving a job, whether by choice or due to a layoff, requires more than just wrapping up your final tasks. If your role includes health, dental, or other insurance benefits like life insurance or critical illness coverage, it’s important to plan your exit carefully to avoid coverage gaps and missed deadlines. 

Here’s our step-by-step group benefits offboarding guide to help you stay protected during and after your transition. 

Before you give notice

Before officially resigning, it’s important to understand how your benefits will be affected and what options are available to you. Preparing early can help you avoid losing valuable coverage.

When you give notice or a receive layoff notice

Once you’ve given or received notice, it’s time to gather the key information from your HR team or group benefits insurance provider. Your timeline for benefits termination and conversion may start at this point, so it’s important to confirm the following key dates and information.

Final weeks of coverage

During the final weeks of group benefits coverage before you leave a job, use your remaining time to get the most out of your plan before it ends. This is your window to schedule any services you haven’t used coverage for yet. 

Within 30 days of coverage ending

Within 30 days of your group coverage ending, you should make time to submit any outstanding claims before your plan’s run-out deadline, and begin the process for securing new coverage. 

Within 60 to 90 days of coverage ending (don’t miss this window)

Within 60 to 90 days after your group coverage ends, you’ll have a final opportunity to secure private health and dental insurance, often without needing to complete medical questionnaires or examinations. Most insurers, including Canada Life, Pacific Blue Cross, and PolicyMe, offer this limited window for guaranteed acceptance into an individual or conversion plan. 

With PolicyMe, you can apply for coverage within 90 days of losing your group plan, or even before you leave with the option to set your policy’s start date up to 30 days in advance. 

How much does health insurance cost? 

Private health insurance in Canada typically costs between $75 and $150 per month, depending on your age, province, and level of coverage. Your premiums may also vary based on the insurer, health insurance plan type, and whether you’re applying individually or with dependents.

To give a clearer picture of what basic private health insurance might cost, here are the average monthly premiums for PolicyMe’s Economic plan for Canadians aged 21 to 44:

How much healthcare could cost if you pay out of pocket

Without workplace or private health insurance, you may be on the hook for a lot more than you think. While your provincial health plan covers doctor visits and hospital stays, common health-related expenses like prescriptions, dental services, and vision care aren’t included. That means you’ll need to pay for these services yourself unless you have extended health insurance. 

While healthcare costs vary by province, data from the Canadian Institute for Health Information (CIHI) shows that the average Canadian spent about $1,358 out of pocket in 2024. Here's a breakdown of those typical costs:

• Prescription medications: According to Statistics Canada, around nearly 18% of Canadians spend more than $500 per year out-of-pocket on prescriptions. Annual costs can land between $1,000 and $1,800 depending on what medications you need and how often.
• Dental care: Basic dental cleanings typically cost $150 to $250 per visit, and most people go twice a year. That’s around $300 to $500 annually, without factoring in extras like fillings or emergency care.
• Vision care: Routine eye exams cost between $75 and $150 on average, a new pair of glasses or contact lenses can run you $100 to $300. Combined, that’s around $175 to $450 each year that vision care is required.
• Paramedical services: When it comes to physiotherapy, massages, or chiropractic care, these services can cost between $50 and $125 per session, depending on the provider and province. If you go regularly, you could spend $250 to $1,000 or more annually.

Health insurance isn’t just about saving money; it’s about staying prepared. From prescriptions to massages, the costs can add up fast when you’re paying out of pocket. A private health plan helps you stay ahead of health issues, access care when you need it, and avoid unexpected bills down the line. 

How much health insurance coverage do you need?

Premiums aside, choosing the right level of health and dental coverage depends on your medical needs, budget, and risk tolerance. Here are a few key factors to help you determine the right level of coverage for your needs:

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• Check your existing coverage: Review your provincial health plan and any coverage you may have under your spouse or partner’s health insurance coverage. What’s already covered, what’s not, and what are you making use of?
• Calculate your current costs: Add up what you paid out-of-pocket last year for things like prescriptions, dental, and vision care, plus your health insurance claims if applicable. 
• Pinpoint your coverage gaps: Look at what wasn’t reimbursed or covered, and divide that amount by 12 to see your average monthly shortfall.
• Compare health insurance quotes: Search for coverage that fills the gaps from last year; whether they were for dental, vision, or supplemental healthcare. Are premiums less than what you spent?
• Estimate your savings: Review details like coverage caps and eligible services to see how much you could save with a plan in place. 

What to look out for when buying health insurance

During your private health insurance purchasing process, be sure to check out customer reviews for different health insurance companies. A smooth claims experience can make a big difference when you actually need to use your benefits

What happens to other employee benefits when you leave a job? 

When you leave a job — whether due to resignation, layoff, or contract end — group benefits typically stop. These benefits include life insurance, disability insurance, and critical illness coverage. Depending on your plan, you may be eligible to convert these benefits to personal coverage to avoid gaps.

Here’s everything you need to know about replacing employee benefits when you leave a job.

What happens to life insurance when you leave a job?

Group life insurance typically ends on your last day of employment, but many employer plans offer a conversion option. This allows you to carry your life insurance forward by switching to an individual policy without medical underwriting. You usually have 31 days from the end of your group coverage to make the switch.

Before you convert your policy, be sure to compare rates and coverage plans from different insurance providers. You may find that your coverage needs are better met by a different provider for a lower premium. 

Wondering where to start? PolicyMe’s efficient quote and application process is designed to help you explore term life insurance coverage options that meet your needs with flexible terms and affordable premiums. 

What happens to disability insurance when you leave a job?

Group disability plans (both short-term and long-term) end when employment does. In some cases, if you’re already on a disability claim before your last day, you may qualify for a premium waiver that lets your coverage continue. Otherwise, if you’re healthy at the time you leave your job, you’ll likely need to find a new policy.

To stay protected, consider applying for individual disability insurance, especially if your income or savings would take a hit without it. 

What happens to critical illness coverage when you leave a job?

Critical illness coverage usually ends when your employment does, but you may be able to convert your group policy into an individual one within a short window (usually 31 days). 

Some insurers offer conversion options up to your existing benefit amount, which means you won’t need to undergo a medical exam. Keep in mind that age restrictions and deadlines apply, so act quickly if you want to keep this protection.

FAQs: When does health insurance expire after leaving a job?