Best Self-Employed Health Insurance 2025
Working for yourself doesn’t have to mean forgoing benefits—securing self-employed health insurance is more affordable than most people realize, with plans starting as low as $72 per month.
For the average self-employed Canadian, provincial health coverage isn’t sufficient. Provincial plans don’t typically cover prescription medication, dental and vision care, mental health support, or paramedical practitioners like chiropractors and physiotherapists.
This is where private health plans make all the difference—when you use them to cover multiple health and wellness needs, you’ll enjoy the maximum value from your health insurance coverage.
Is private health insurance worth it if you’re self-employed?
If you’re self-employed and struggling with high out-of-pocket healthcare and dental costs, private health insurance may be a worthwhile investment.
While the majority of 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 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 healthcare: What they cover
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” only covers medically necessary care, including things like doctor’s visits, blood work, emergency surgeries, and illnesses that require hospitalization.
Universal health care typically does not cover prescription medication, dental visits, vision care, and paramedical services like mental health care, chiropractic, 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 complementary. While provincial plans cover essential and emergency services, private plans help pay for everyday health needs to offer more complete protection and flexibility.
The bottom line: government coverage isn’t enough for most self-employed Canadians
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, you’ll only receive coverage for essential medical services through your provincial health plan.
Private health insurance works hand-in-hand with government coverage, filling the gaps to provide more comprehensive protection.
How much does self-employed health insurance cost?
Self-employed health insurance is surprisingly affordable, and PolicyMe plans start at $72 per month. The cost of your premiums will vary depending on factors like your age, where you live, and the type of coverage you purchase.
Health insurance cost by age
Generally speaking, the older you are, the more you’ll pay for health insurance coverage. Here are some starting monthly rates for PolicyMe’s Economic plan in Alberta based on your age.
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. Here’s the average cost for PolicyMe’s Economic 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 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.
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 if 90% or more of the premiums relate to medical expenses that are eligible under the Medical Expense Tax Credit.
The best health insurance companies for self-employed Canadians
The best way to determine which health insurance coverage is right for you is to compare plans and quotes from multiple insurance companies. Luckily, we’ve done the research so you don’t have to.
Here's a rundown of some of the most poStep 6: Reassess your needs annuallypular providers of health insurance for self-employed Canadians.
PolicyMe
Best for: Affordable health insurance with easy online sign-up
Types of plans available: Health and dental, critical illness
What we like:
- Highly competitive, transparent pricing with plans starting at $72/month
- Better rates for those transitioning off group plans
- Fully online application process—typically takes less than 15 mins
- Seamless digital experience for claims management
What to consider:
- Limited range of products
- No physical office locations or in-person agents
Read more: Is PolicyMe legit?
Desjardins
Best for: Bundling coverage for better rates
Types of plans available: Critical illness, disability, health and dental, travel
What we like:
- Flexible plan options—basic, enhanced, and add-on coverage
- All plans include travel insurance
- Bundling discount available
What to consider:
- Basic plans include limited dental coverage
- No access to online quotes—must speak with an agent
- Numerous reviews note issues with claim submission and frequent denials
- Reviews note poor customer service
Read more: Desjardins health insurance review
Manulife
Best for: Flexible plans with plenty of add-ons
Types of plans available: Health and dental, critical illness, disability, long-term care, hospital, travel
What we like:
- Options to build your own plan or choose all-in-one-bundles
- Add-ons like hospital coverage and catastrophic coverage
- FollowMe plan for transitioning off group coverage
- Trusted national insurance provider
What to consider:
- Add-ons can quickly increase premiums
- Low customer experience scores
- Reviews note long claims processing times and poor agent service
Sun Life
Best for: Comprehensive packages with digital management options
Types of plans available: Health and dental, critical illness, long-term care, travel
What we like:
- Strong financials and long history in Canadian market
- Multiple plan options with plenty of optional add-ons
- Digital portal for online policy and claims management
What to consider:
- Limited ability to get online quotes
- Disability insurance requires contacting advisor
- Reviews note concerns with claim eligibility and customer service
Read more: Sun Life health insurance review
Blue Cross
Best for: Regional coverage and travel insurance
Types of plans available: Health and dental, travel
What we like:
- Regional branches help tailor coverage and care to local nuances
- Strong travel insurance
What to consider:
- Premiums may vary significantly by province
- Mediocre online experience
Read more: Blue Cross health insurance review
Types of health insurance for self-employed Canadians
When you think of health insurance, you probably think of prescription and dental coverage—but there are several supplemental plans available, too.
- Extended health insurance is your traditional plan, which covers everyday health expenses that your provincial plan doesn’t. This includes prescription medication, dental and vision care, paramedical services, medical equipment and supplies, and ambulance services.
- Critical illness insurance offers a lump-sum payment if you’re diagnosed with a covered illness, such as cancer, heart attack, or stroke. You can use the money for whatever it is needed for.
- Disability insurance provides a monthly payment if you can’t work due to illness or injury. This is especially important for self-employed workers without employer-covered sick leave. Payments are a percentage of your income based on your policy.
- Travel medical insurance covers emergency medical expenses when you’re traveling abroad, like hospitalization and emergency care.
- Hospital insurance helps cover the costs related to extended hospital stays, such as parking and meals.
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
Always read the fine print. Pay special attention to:
- Annual limits
- Waiting periods
- Rules around pre-existing conditions
Step 5: Get quotes and apply
Aim to get 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 if necessary.
Here’s what coverage we recommend for these self-employed Canadians
The right health insurance plan for your self-employed friend may not be the right one for you. That’s because 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
