If you’re reading this article, you already know that the cost of medical and health expenses, which may not be covered by public plans, has been rising. And without a company health plan, unexpected and expected health expenses can easily derail your budget.
And yet with so little disposable income left over at the end of every month, you may wonder how you can afford private Health and Dental Insurance.
By arming yourself with the right information, tools and these budgeting tips, you could help recoup or offset the cost of monthly premiums with little to no disruption in your family’s routine.
Flexible insurance plans such as Manulife Flexcare® Health and Dental Insurance Plans* - prescriptions, eyeglasses and more. Plans are customizable and affordable.
Budgeting tips
- Reduce utility costs. Slightly reduce your consumption of electricity, gas and water, and take advantage of peak savings rates. Bundle services like cell phone, cable and internet.
- Reduce your grocery bills. Apps like Flipp help point you to savings on your favourite foods. Find nearby deals on gas with apps like GasBuddy.
- Simplify your banking. Could you make do with fewer accounts offering more features and savings and fewer fees? The Manulife One bank account is feature-rich and offers great value.
- Be a shop-ahead gifter. When you see a good deal on a potential birthday, holiday or anniversary gift, nab it ahead of time and save.
- One less restaurant or delivery meal a month can add up. If your insurance premiums were $100 a month, eliminating one restaurant meal with a value of $100 could cover it.
Tax-deductible health expenses: a best-kept savings ‘secret’
It’s safe to say that most people’s idea of a good read is not the CRA (Canada Revenue Agency) website! But maybe it should be -- the CRA has a laundry list of health and dental expenses that you can claim on your income tax return, many of which may surprise you. Keep your receipts and check the list. Eligible expenses when prescribed by a physician include:
- Dental visits
- Breast prosthetics
- Elastic support hose
- Injection pens and insulin
- Needles and syringes
- Orthopaedic shoes and inserts
- Pacemakers
- Vehicle modification
- Vision devices
- Walking aids (excluding crutches)
For more information, visit http://www.cra-arc.gc.ca/medical/
If you’re self-employed or own your own business, your premiums could even be tax deductible.
In fact, even if you’re not self-employed or a business owner, you may still be eligible for a tax credit if your premiums qualify as medical expenses.
Contact the Canada Revenue Agency or consult with your financial advisor for full details of the tax deductions that may be available to you.
Choose the plan that’s right for you – not somebody else.
Why pay for more coverage that you need – or, conversely, leave yourself exposed and underinsured? Online tools like the Insurance Plan Selector Tool can help you choose the right plan for you.
With the Flexcare® or FollowMeTM Health Insurance plans from Manulife, you pay only for what you need and want to be covered for, if something unexpected happens. Choose the plan that most closely reflects your lifestyle and budget, or create your own with Stand-Alone options.
Savings can help offset the cost of coverage.
This is an example of how a person who is self-employed and has a Manulife Health Insurance Plan could take advantage of tax savings and coverage offered by the plan, to help offset costs.
| Sample Flexcare Health and Dental Plan Annual Premium: | - $1,187 |
| Minus Tax deduction assuming 40% marginal rate |
+ $475 |
| Total Net Cost of Premium: |
- $712 |
| Saved Annual Expenses (covered* with the plan) | |
| Prescription Drugs |
- $525 |
| Dental Care | - $402.50 |
| Vision Care | - $210 |
| Chiropractor/Registered Massage Therapist |
- $1,637.50 |
| Your potential savings after premium and expenses |
+ $925.50 |
*Note: sample illustration based on Single ComboPlus Starter annual premium for Ontario resident, aged 45-54.
Conditions, limitations and exclusions apply. See policy for details.
The content contained in this material is for informational purposes only. None of this content should be considered, or used as a substitute for, tax or financial advice. Contact the Canada Revenue Agency or consult with your professional tax, financial or other competent advisor.
This article is part of a continuing series of informational articles about the issues impacting health care in Canada. Manulife offers a range of insurance and banking products to meet the changing needs of Canadians, including Health & Dental coverage. For more information on plans or other informational articles, visit coverme.com/health or call 1-844-664-3539.
You might also like
Underwritten by The Manufacturers Life Insurance Company. Flexcare® and FollowMeTM are trademarks of The Manufacturers Life Insurance Company and is used by it, and by its affiliates under licence. © 2017 The Manufacturers Life Insurance Company. All rights reserved. Manulife, PO Box 670, Stn Waterloo, Waterloo, ON N2J 4B8