A guide to insurance for newcomers to Canada
Understanding how insurance works in Canada is no easy feat, especially as a newcomer. Leverage this complete guide to learn the basics of insurance.
Insurance protects you, your family, and your possessions from the risk of financial hardship if the unexpected happens.
If there is a burglary attempt on your home, your valuables are stolen, or you get into a car accident, insurance policies will help you cover the financial burden. While optional, some insurance coverage is mandatory by law – like auto insurance.
As you start your journey in Canada, assess your situation and determine which type of insurance coverage you need.
This guide will break down the main types of Canadian insurance and provide educational resources to help make your transition smooth.
Insurance terms you need to know
Insurance
A contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools the clients’ risk to make payments more affordable for the insured.
Premium
The amount of money an individual or business must pay for an insurance policy. Premiums are typically paid monthly or annually and are determined based on the risk associated with the insured person or entity.
Deductible
The amount of money that the policyholder must pay out of pocket before the insurance company pays for covered expenses. Higher deductibles generally lower the premium but increase the amount the policyholder must pay when making a claim.
Policyholder
The individual or entity that owns the insurance policy. This person or entity pays the premium and has the rights and responsibilities outlined in the policy.
Beneficiary
The person or entity designated to receive the benefits or payout from an insurance policy – particularly in the context of life insurance – upon the occurrence of the insured event, such as the death of the insured person.
Exclusions
Specific conditions, circumstances, or types of losses not covered by an insurance policy. Exclusions define coverage limits and clarify what the insurance company will not pay for. Common exclusions include intentional damage, wear and tear, and pre-existing medical conditions.
Essential insurance types for newcomers to Canada
As a newcomer to Canada there are few insurance products that you should be aware of, as these essential coverages will help to protect and secure your personal well being. Understanding what these coverages are, how they work, and where you can get them will allow you to settle into your new Canadian home.
Super Visa insurance
Home & tenant insurance
Auto insurance
Health insurance
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Settling in: Additional insurance coverages for newcomers to Canada
The insurance types we detailed above are the basics for Canadian newcomers. However, once you’ve had the chance to settle into your new home, additional coverage options exist that you should consider. These coverages will help to further protect the financial security of your loved ones, as well as allow you to travel within this great nation or abroad with peace of mind.