Providing world-class healthcare, education, and social security, Canada is one of the most welcoming countries for immigrants. It is vital for newcomers to secure the right insurance coverage in order to build a stable life. There is a requirement for proof of financial stability when applying for certain immigration and visa applications, where insurance can help protect health, property, and income.
The purpose of this guide is to explain the types of insurance immigrants need to settle in Canada, their role in applications, and how they assist immigrants in settling down.
1. Immigrant health insurance
Provincial and territorial health insurance plans provide public healthcare in Canada. Nevertheless:
- Depending on the province, there may be a waiting period before coverage begins for new permanent residents (up to 3 months).
- There may be a need for private health insurance for temporary residents (students, workers, visitors).
The options are:
- Coverage under provincial health plans: Healthcare is free or low-cost once you are eligible.
- Medical coverage provided by private insurers: Expenses not covered by the public system (dental, prescriptions, vision care).
- Health Insurance for Students: If their school does not automatically provide coverage to international students, they must purchase it.
Here’s why it matters: Proof of health insurance may be required for some temporary visas and study permits.
2. Automobile insurance
In all Canadian provinces, car insurance is mandatory. A licensed insurance company must provide coverage to immigrants who intend to drive.
- Indemnity coverage: Protects you against damage or injury to others.
- Auto Collision/Comprehensive Insurance: Protects you against damage to your own vehicle.
Typical Cost: CAD 1,000 – 2,500 per year (varies by province, age, and driving history).
3. Insurance for homeowners and renters
The following housing protections are strongly recommended for immigrants:
- Insurance for homeowners: Mortgages require homeowners insurance.
- Insurance for renters: Covers personal belongings in the event of theft, fire, or water damage.
Typical Cost: Between 400 and 1,200 CAD per year.
4. Coverage for life insurance
For immigrants in Canada or abroad with dependents, life insurance is essential. Death and serious illness are covered by it.
- A term life insurance plan: Affordably priced, covers a set period of time.
- The whole life insurance policy: Long-term protection with savings potential.
Typical Cost: Between CAD 25 and 100 per month, depending on health and age.
5. A short-term travel insurance policy (pre-arrival and post-arrival)
- Before provincial coverage begins, visitors, students, and new immigrants often need travel insurance.
- Visa applications may require it as proof of financial preparedness as well.
Getting insurance as an immigrant in Canada is important
- Support for temporary visas and study permits: Some temporary visas and study permits require proof of health or travel insurance.
- A legal requirement: Auto insurance is mandatory.
- Access to healthcare: Private insurance covers gaps until public health insurance becomes available.
- Provides financial protection : Protects against unexpected losses, illnesses, or accidents.
- Stability for immigrants’ futures: Life insurance and home insurance provide long-term protection.
Conclusions
It’s important for immigrants to understand that insurance is more than just protection – it’s a part of building a new life in Canada. Insurance coverage ensures financial security and peace of mind in the form of health insurance required for applications as well as car, home, and life insurance once you are settled. The key to a smooth transition and living in your new home with confidence is understanding Canada’s insurance system.