Whether you are self-employed or someone in or nearing retirement you have likely reached a level of independence in life. You may have always felt that one way or another you are working towards a level of financial freedom; freedom to choose how you will spend your retirement and spend your money.

From experience, you know that there are certain points in our lives when unexpected financial demands can be especially burdensome. If you work for yourself or are not paying into an employer’s healthcare plan some healthcare costs can be a surprise. They can even compromise your sense of independence and freedom.

Even more concerning is that there is a misconception that once you turn 65 all of your medical costs are covered by OHIP. Let me tell you that there are many costs over and above your provincial healthcare plan’s coverage. You can expect to spend upwards of $5 000 a year on out-of-pocket medical costs after the age of 65[1]. And, Statistics Canada has found that between the ages of 55 to 75 the likelihood for some type of assisted long-term care can rise from 10% to 50%[2].

To put the risks of not having a healthcare plan into context, medical costs are rising every year. Whether you are a self-employed professional or a retiree, you are likely not covered by a group healthcare plan, and it is important to note that between 2004 and 2014 healthcare costs were the fastest rising of all domestic costs, rising by a surprising 54%. In comparison, the cost of shelter, clothing, and food rose by 41%, 33%, and 16% respectively[3].

Medication expenses can become financially draining if not covered under a prescription plan. Imagine being diagnosed with cancer and being prescribed an oral cancer drug prescription which can cost up to $6 000 a month[4].

It goes without saying that once you are diagnosed with an illness that requires ongoing medication, you would not be able to apply for a prescription plan to get those prescription costs covered. It would be similar to applying for life insurance after you’ve passed away! Healthcare insurance planning is like all insurance planning, meaning it is meant to be pro-active, not reactive; so you need to be covered before you need to make a claim, not after.

There is simply no reason to put off preparing to cover your bases right now. We all hope to avoid larger than unexpected healthcare costs. Think of it this way; to face the fact that many of these costs cannot be avoided is to embrace and expand your independence. Start by getting the help to match your specific needs with a plan.

Incorporating a healthcare plan into your budget eases the possibility of having to absorb sudden shocking costs. Insurance can never guarantee good health, but it can help alleviate some of the financial burden unexpected healthcare cost can cause. Insurance means the assurance that you can take care of yourself and take care of others.

 

For more information, please call me today.

Maria Raso

Life and Health Insurance Advisor

Desjardins Financial Security Independent Network

Maria.raso@dfsin.ca

Direct: (416) 562-4229

Office: (416) 695-1433

155 Rexdale Blvd., Suite 406

Etobicoke ON, M9W 5Z8