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A Guide to Health Insurance for New Univeristy Graduates in Manitoba & Canada

Akari Digital — Fri, 15 Apr 2022 19:53:59 +0000

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A Guide to Health Insurance for New Univeristy Graduates in Manitoba & Canada

April 15, 2022

Updated: January 6, 2024

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As a student, you never had to worry about health insurance. You were automatically covered by either your school’s plan or your parents.

But now that you’re graduating, that’s all going to change fast! Because any student coverage you have ends the moment you graduate. And you stop qualifying for your parents’ plan the second you turn 26.

This is why, as a new grad in Canada, it’s really important to understand your options for health insurance!

We know the idea of purchasing your own health insurance now might seem intimidating, but it’s actually pretty simple. And locking it in early, while you’re healthy, could set you up to have access to affordable health and dental care for the rest of your life.

Let’s get into it.

What New College Grads Need To Know About Health Insurance

Congratulations! You’ve finished your schooling and you’re ready to get out into the working world. But as exciting as the present is, it’s important to look out for future you, too. We know this may not always be the most fun thing to do—especially because you just spent two or more years looking forward! But trust us when we say you’ll thank yourself later.

One way to look out for your future self is to register for your own health insurance plan. Why? Well, there’s a good chance that your current health coverage cuts off as soon as your student status changes. Using your parents’ plan? That’ll end as soon as you walk across the stage, too! (Typically you only qualify as a dependent under your parents’ plan if you’re in school full-time and under 25—but check your parents’ plan for specifics as policies do vary.)

4 Reasons Not To Wait For Employee or Group Health Insurance

To save money, some new grads skip the “get health insurance” step and instead wait until they get a full-time job with a group health and dental plan. But we don’t recommend this for you.

Here’s why:

#1 Not All Jobs and Titles Come With Health Insurance

Because you may not find yourself in a full-time position—even in a role where a group plan is offered—right away. Many employers put limitations around their health insurance where the part-time, contract and brand-new employees have different or no access to benefits.

#2 Health Insurance Isn’t One-Size-Fits-All

Another con? Your future employer may only offer basic health insurance or a group health plan that doesn’t line up with your needs. And if this is the case for you, instead of saving you money, putting off buying health insurance will only leave you with costly bills you thought were covered—but are now coming out of your pocket.

#3 You Could Need Coverage While You Wait

We all like to think we’re indestructible, but one of the not-so-fun realities of life is that things pop up when we least expect them. Waiting to get covered could leave you in a lurch when you need your insurance the most. So at the very least, it’s worth looking into temporary coverage options!

#4 Insurance Is Cheapest While You’re Healthy

If affordable healthcare is a concern for you, lock in your insurance while you’re young and healthy! A major factor when it comes to determining your monthly rates and eligibility is your current health status and whether or not you have any existing conditions. If you’re currently healthy, getting coverage now allows you to lock in lower rates and ensure your insurability in the future—even if you get sick down the road.

New Grad Health Insurance FAQs

Every policy is different, and every new grad’s situation is, too. We’re answering some nitty-gritty FAQs to get you the information you need most:

As A New Grad, Does My Parent's Insurance Cover Me?

Every policy is a bit different, but typically, no. Most students qualify as a dependent under their parents’ insurance plan while they’re in school full-time and 25 or younger. In that case, once you A) finish school or B) celebrate your 26th birthday, you’re no longer covered under their plans. The same typically goes for any insurance policies offered through post-secondary education institutions.

At What Age Does My Parents’ Insurance Stop Covering Me?

Most plans cover adult children until they turn 25. But be sure to check with your parents’ specific plan, as every policy is different!

As A New Grad In Canada, How Long Does My Parents’ Health Insurance Cover Me?

Most insurance providers stop classifying you as a dependant after the age of 25. Plan for the fact that you’ll be losing coverage the moment you turn 26!

Am I Still Covered By My Parents’ Insurance If I’m A Full-Time Student?

Once again, specific dependant coverage changes policy to policy. Most often, though, as long as you’re a full-time student and 25 years or younger, you should be eligible for coverage.

As A New Grad, Can I Pay To Stay On My Parents’ Insurance?

No, not typically. But the good news is that it’s super beneficial to buy your own insurance while you’re young and healthy! Premiums will be lower, you’re less likely to face exclusions, you’ll develop stronger financial and spending habits, and you’ll feel really good knowing you’re covered thanks to you. So even though securing health insurance is an extra to-do right now, try to see it as a good thing! Something you’re doing for future you.

So You’re Off Your Parents’ Health Insurance…Now What?!

In Canada, most new grads are only covered by their parents’ insurance until they turn 25.

If you’re just realizing this now, you might be a little stressed. Because while being off your parent’s insurance can give you a sense of freedom, it also opens the door for A LOT of questions and unknowns.

That’s why we created a free Guide To Insurance For Manitobans in their 20s and 30s for young adults like you! In this simple, easy-to-read guide, we break down all the insurance policies that we recommend you take advantage of while you’re young and healthy so you can capitalize on better premiums, have more choices, get better spending habits, and set yourself up for success.

Health Insurance Plans & Options For New Graduates

There are health insurance options tailored to every new graduate’s budget and lifestyle. Sometimes there are even additional savings and discounts available for you as a new grad! So even though you might shop around a little, rest assured that there’s a plan out there that’s perfect for you.

Health Insurance Coverage New Grads Should Look Into

A personal health plan that covers your medical and dental needs is an excellent first start. But if you can, this is also a fantastic time to look into additional life and Critical Illness plans (because again, the earlier you buy, typically the better your coverage and the cheaper your rates will be!). Remember, your health can change at any time, so getting insurance down the road isn’t always a sure thing.

Association Plans

Depending on your field of study, association plans may be available once you graduate. These help you save money just by being associated with a particular group. Typically, association plans are tailored to new graduates in the fields of medicine, law, and pharmacy, but they can include other associations too, so it’s always best to ask.

Tip: Look into association plans before you graduate if you can, to be sure you don’t miss out on any potential savings!

Educated, Insured & Ready To Get After It

This will be you once we get your new health insurance!

We get it. Looking into and purchasing health insurance is a little intimidating. And, it’s not exactly one of the highlight-reel moments of getting out into the real world! We also get that you’re in a time of your life where a lot of new things are being thrown at you—many of them stressful.

We want to help you make solid decisions now that carry you through your first few years in the workforce and beyond. Just imagine how good it will feel to know you’re not only covered—but that you’re covered by insurance you found, bought, and paid for yourself!

We’re here to help you make it happen!

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Guide to Health & Life Insurance for 20- and 30-Year-Olds in Manitoba

Akari Digital — Mon, 07 Feb 2022 22:55:03 +0000

Personal

Guide to Health & Life Insurance for 20- and 30-Year-Olds in Manitoba

February 7, 2022

Updated: November 26, 2023

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Most young adults don’t think insurance is a big deal at their age. And we get why!

When you’re young, healthy, and just starting out, it’s hard to imagine that life and health insurance are necessary or worth the cost. It can seem wasteful to buy something you might not use for years. Especially when there are so many other things to save and spend on today!

In this post, we’re going to show you why buying insurance before you need it isn’t a waste of money at all. Actually, it’s the opposite!

By buying insurance while you’re healthy, you’re locking in the lowest rates you’ll ever have access to and keeping them for your entire life while investing in your financial future. (Because some policies can be used as cash later when you’re ready to make a big purchase like buying a home!)

Lots of financial decisions are complicated. This one is a no-brainer and a win-win. Let us walk you through it!

Benefits Of Health & Life Insurance For Young Adults

Buying insurance as a young adult just makes sense. There are so many reasons why it’s advantageous for you, from both an insurance and a financial perspective.

#1 You’ll Pay Way Less

For certain types of policies, a big factor when it comes to determining your rates is your age. Typically, the younger you are when you lock-in your policy, the more affordable your insurance premiums will be. (Even if you bought the same policy later in life, and you were still healthy at that time, you could expect to pay higher premiums!)

Types of policies that consider your age as a factor are life insurance policies and those that offer living benefits, like Critical Illness and Disability Insurance. (Living benefits are a type of payout you can rely on if you suffer from a covered illness or injury while you’re living, whereas the proceeds from a life insurance policy can only be claimed after the policy holder has passed away.)

#2 Being Young & Healthy Gives You Choices

Another factor insurance companies sometimes use to determine your rates is your health. Sometimes, new applicants are subject to a medical exam. The results of that exam can affect what you pay—the healthier you are, the smaller your premiums are likely to be. So if you’re young and healthy, now is the time to lock-in lower rates. They’ll likely be the lowest rates you’ll ever be offered!

“Don’t Wait Until You’re Sick To Buy Health Insurance!”

Your health can change in an instant, and your insurability will change alongside it. So it’s important to insure yourself when you’re in good health—not after a big health change (when you may not even qualify anymore).

The great thing about many life insurance options is that you can buy what’s called a “whole-life policy” when you’re young. This type of policy locks in the low rates you get for being young and healthy for the life of the policy—even as you age, and even if you get sick! (This is why we recommend that parents consider insurance for children, even as infants—to guarantee their insurability into adulthood and as their health changes.)

#3 You’ll Build Better Spending Habits

Buying insurance as a young adult builds good financial habits. By investing in policies that benefit you financially, what you’re really doing is investing in yourself and your future.

Investing in yourself through different insurance policies is smart because it gets you into the routine of paying insurance premiums and gives you an early understanding of the value of each of your policies. And, as your income grows, the locked-in monthly premiums you pay won’t, so the amount you pay each month will seem less and less significant.

#4 You’re Setting Your Family Up For Success

Buying insurance young also helps you establish credit ratings and other factors that can contribute positively to your future financial decisions. For example, having an insurance policy on your belongings when you rent an apartment (a policy known as Tenant’s Insurance), helps build your profile and your potential for discounted rates when you move into a house later on!

Types of Insurance 20- and 30-Year-Olds Might Need

If you drive, you probably know you need auto insurance. And if you travel, odds are you’re familiar with travel insurance. But have you considered all of the other types of insurance that, as a young Manitoban, you can benefit from? We recommend taking the time to learn about these 6 key types of insurance for young adults:

Life Insurance (More on this below)
Health Insurance (More on this below, too!)
Tenants insurance
Critical Illness Insurance
Travel Insurance
Auto Insurance

You can do this learning on your own by continuing to read this post AND checking out our Insurance for Young Adults resource page. Here you’ll find more information on all the insurances we listed above, plus a few others we think you just may need (hello stress, free winter ski vacation!).

Is Health Insurance For Young Adults Worth It?

It’s so beneficial to purchase insurance while you’re young and healthy, because your health insurance premiums will be very low at this point. When a young person buys life insurance, they almost always lock-in the lowest possible premiums and they’re way less likely to have exclusions or declines put on their plans—something that becomes more common as we get older and if we apply for insurance pre-existing conditions.

How Much Is Health Insurance For A 20 Or 30-Year-Old?

The cost of health insurance for 20- to 30-year-olds depends on a few factors, including the health and age of the person buying the insurance and the type of plan they’re looking for. That said, it’s possible to find plans for as low as $20 per month!

How Long Am I Covered Under My Parents’ Health Insurance?

Every policy is different, so be sure to read up on the specifics of your family’s plan. But typically, a child can be considered a dependent while they’re full-time in school up to age 25.

Are My Employee Health Benefits Enough?

A group policy at work is great to have, and if your employer is offering you one, you should definitely go on it! But it’s important to remember that group policies are only good for as long as you’re with that specific company. Also, you won’t have any ownership over the group policy, meaning you won’t control the types of benefits that are offered. Think of it as renting coverage from your company for the time you’re with them. Renting is better than nothing, but if you can swing it, “owning” your health insurance is ideal.

Other considerations for group policies are that they typically place limits on most of their benefits, and they’re often subject to the size of the company, so bigger companies tend to have more lucrative plans (although that’s not always the case).

Group policies are also likely to have:

Maximums placed on the amount of coverage that’s available (for example, a $500 per year maximum for physiotherapy)
Maximums on drug coverage amounts
Maximums on the types of drugs covered
Deductibles you’ll have to pay
Limits on out-of-country coverage
Some exclusions

Be sure to read over your policy booklet as soon as you get it, and ask any questions you might have. The worst time to find out how good or bad your policy is is when you need to claim on it!

What’s The Best Health Insurance For Young Adults?

For all the reasons listed above, the best insurance is a policy you own yourself! Get in touch with us if you need help setting yours up.

Best Life Insurance For Young Adults

Just like with health insurance, it’s incredibly beneficial to purchase life insurance while you’re young and healthy. Premiums will be lower, and you’re way less likely to face exclusions. If you’re able to secure this coverage for yourself and your family, do it as soon as possible!

The Best Type Of Life Insurance For Young Adults

For young, 20- and 30-year-old Manitobans, we recommend:

A Living Benefits policy like Critical Illness and Disability Insurance.
Term Life Insurance
Permanent Life Insurance

We recommend talking to an Insurance Advisor about all of these types of insurance and the options available to you, so you can make the best coverage decision together.

How Much Is Life Insurance For A Healthy Young Adult?

Individual insurance plans can be tailored to your budget and needs, so it really depends on your lifestyle and the plan you choose. That said, the cost of life insurance for a person in their 20s or 30s is around $20-60/Month.

Is Life Insurance Necessary For Young Adults?

Yes! Life insurance goes beyond providing death benefits and can actually give you a cash value to use when making big purchases in the future, like buying a home. So as a young adult, life insurance doesn’t just cost you money, it saves you money while improving your financial situation. That makes it very worthwhile!

This is one of a few of the major misconceptions we often hear about life insurance for young adults. We’ll address the others in the next section of this post!

Myths & Misunderstandings about Life Insurance for Young Adults

#1 Claims Won’t Get Paid Out

People seem to think that life insurance companies regularly deny claims, but this isn’t true. The only time a life insurance claim wouldn’t be paid is generally if:

There was fraudulent information on your application
You misrepresent yourself or your personal information
The policy holder committed suicide in the first 2 years of the policy effective date
The policy holder was committing an act of war or a criminal offense at time of death

Your insurance company will do so much due diligence before they issue your policy that as long as you’re truthful and honest on your application, you’ll be eligible to receive your coverage when you need it. (They wouldn’t do this if they were just going to deny all claims!)

#2 Buying Life Insurance is Hard

Some folks believe that buying life insurance is difficult, confusing, and expensive. But it’s really not—especially when you have an Insurance Advisor on your side. A good Advisor will simplify the process and make sure you get the coverage you need while keeping your budget in mind.

#3 Group or Employee Insurance Is Enough

Many people believe they’ve got all the coverage they need through their employee group insurance program. But as we mentioned above, while a group plan is fantastic, it’s not everything—and it’s not enough. (You have no control over your coverage or the premiums you pay, and if you leave your company, you don’t take the coverage with you.) The best thing for young Manitobans to do is take out personal life and/or health insurance plans that supplement their employee coverage.

#4 Only The “Breadwinners” Need To Be Insured

Some people think that only the “breadwinners” of the family need life insurance coverage. This couldn’t be further from the truth! Managing a home is a full-time job. (If stay-at-home parents and homemakers were paid, they’d be making the big bucks!) The cost of replacing all of the in-home labour for taking care of a family would be higher than most people think. (Childcare alone can be a major cost!)

#5 I’m Young And Healthy. I Don’t Need Life Insurance!

For different reasons depending on all of our different lives and situations, everybody needs life insurance. Because sadly, we will all pass away one day. No matter how young and healthy you are, or how much money you make, nobody wants their families to have to figure out how to pay for their funeral, or the expenses they leave behind, like accumulated debt, on top of grieving such a major loss. (The cost of the average funeral is up to $10,000!)

The Best Health & Life Insurance for Young Families

Thinking about starting a family? Remember that children can (and should) be insured! Because health and age are factors that influence insurability and the premiums they pay, locking in coverage while they’re young protects their insurability into their adulthood. Even if they get sick later in life, they’ll always have coverage, and their rates won’t go up. We recommend insuring your children with life insurance and critical illness insurance.

For other family members, we always recommend critical illness insurance. Disability insurance is another good option—it depends upon each family member’s occupation.

The Best Times to Buy Insurance

The best times to buy insurance really depend on the types of insurance you are looking to buy. But typically, the earlier you buy, the better.

Life-Long & Critical Illness Insurance

For permanent life insurance and critical illness insurance policies, we recommend buying as early as you can. If you’re buying for your kids, you can do it as soon as they’re born! This locks in their premiums, guarantees their insurability, and can provide them with access to cash when they need it. You’re giving them financial protection they can have forever, and all the benefits of buying adult insurance at childhood rates.

Term Life Insurance

For term life insurance insurance policies, you may be tempted to wait until you’re older—many people do!—but we still recommend buying as soon as you can. Typically, a life event triggers the need for insurance. People tend to wait to buy until they’re carrying debt, or until an event like marriage, having children, getting divorced, or retirement motivates a policy purchase. And while these are all great times to get a policy, you may not want to wait that long.

Remember, factors like age and health can affect your premiums, so the younger and healthier you are when you buy insurance, the better!

Our Team Is Here To Help!

We know buying insurance in your 20s and even 30s isn’t the most exciting thing. But, we hope we’ve shown you why it’s an extremely worthwhile thing!

If you’re intrigued, but overwhelmed or unsure of where to start, we can help. Our Young Adults page has all the resources and information you need to make this process easier.

And of course, we’re always here for you, too. Reach out to us any time you need personalized advice, answers, or quotes. And we’ll get on it for you!

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