What happens to your health insurance if you lose your job?

Job loss. It's not the easiest topic to discuss, but it's something that many people face. During the pandemic, for example, unemployment soared to more than 14%. And more recently, it reached a post-pandemic high of 6.8% in November of 2024.¹

Losing your job can affect you financially, emotionally and psychologically. But one often overlooked factor is the impact on health and dental coverage. More than 90% of health insurance in Canada is purchased through group plans like those provided by many employers.²

So what happens to health insurance if you lose your job? In most cases, the answer, unfortunately, is that you lose your employer benefits, too, including health and dental coverage.

Without the support of employer benefits, an unexpected health or dental emergency could be a major financial setback at a time when you’re already financially stressed. If you need prescription drugs to manage a chronic health condition, such as high blood pressure or diabetes, the cost could strain your budget. You might even be tempted to put off preventive care, like getting your teeth cleaned or your eyes checked.

The good news is that you may not have to pay out of pocket for health-related expenses like these.

Health insurance for the unemployed

There are several ways to continue health insurance after leaving your job. Here are some health insurance options to explore.

Your spouse’s plan. If you’re married or living common-law and your partner has employer benefits, you may be eligible under his or her plan. The benefits may not be the same, however, as those you had under your own plan, which could leave gaps in your coverage.

Government health plans. In Canada, provincial health plans provide universal healthcare to all Canadians who are eligible. Unfortunately, coverage for prescription drugs, vision care and many other benefits provided by employer plans is provided only for certain groups, such as seniors or those receiving government assistance. Similarly, the new Canadian Dental Care Plan sets eligibility criteria based on family income. If you didn’t qualify for these programs when you were employed, you may not be eligible now.

Independent health and dental insurance. Standalone health and dental coverage is available from a wide range of insurers in Canada. Plans and policies differ, but most include coverage for prescription drugs, dental care, vision care and extended healthcare (massage, physiotherapy and so on).

Manulife, too, offers a range of independent health insurance plans, including FollowMe™, which is designed specifically for people leaving an employer’s plan.

Life after job loss

There’s no question that losing your job can be distressing. But it’s also an opportunity to step back and focus on what you’d like to do next. That’s all the more reason to be proactive where your well-being is concerned. With healthcare insurance to help support your physical, mental and financial health, you can be ready for the next exciting stage in your career.

Frequently asked questions

Can I get health insurance without a job?

Yes, of course you can! Whether you’re unemployed, retired, a student or working freelance, you can find a health insurance plan to help protect your health and your savings. You can check out all our available plans at CoverMe.com

How much does health and dental insurance cost without a job?

There’s no one answer to that question. The cost of health and dental insurance depends on a number of factors, including the type of coverage you want, your current health status and history, where you live, and your age and gender. The best way to find out? Get a quote — it’s fast, free and there’s no obligation to buy.

Footnote:

^{1 Statistics Canada. Labour Force Survey in brief: Interactive app. Accessed December 11, 2024.}

^{2 Canadian Life and Health Insurance Association. Canadian Life and Health Insurance Facts, 2024 Edition.}

^{3 Guaranteed acceptance dependent upon receipt of the first premium payment and satisfaction of eligibility criteria.}

Disclaimer:

_{FollowMe™ Health Plans are not intended to, and will not, provide the exact same coverage that you may have had under your group or existing health insurance plan.}