Healthcare coverage and insurance planning

Dentist Retirement Healthcare & Insurance

Ensure comprehensive health coverage in retirement

Healthcare Coverage Transition

Retiring dentists lose comprehensive practice health benefits. Provincial health covers basics (doctors, hospitals) but excludes prescriptions (unless 65+), dental, vision, massage, physio, and paramedical services. The Canadian Dental Association (CDA) offers group insurance plans for members that can continue into retirement.

Annual out-of-pocket healthcare costs for a retiree couple: $4K-$8K without supplemental coverage. Options include: maintain corporate health spending account ($3K-$5K/year), purchase individual supplemental insurance ($300-$500/month for couple), or budget for self-insured expenses.

Age 65: you qualify for provincial drug coverage (varies by province).

Healthcare & Insurance Strategy

Supplemental Health Insurance

Private insurance covers prescriptions (80%), dental (80% up to $2K/year), vision ($300-$500/year), paramedical ($500-$1K/year per service). Cost: $300-$500/month for couple age 55-65. Reduce out-of-pocket risk from $8K to $2K/year. Pre-existing conditions may have exclusions. Apply before retiring for best rates and coverage.

Compare providers (Manulife, Sun Life, Blue Cross). Evaluate coverage limits, exclusions, and premium stability. Often worthwhile for peace of mind.

Corporate Health Spending Account

Maintain holding company to fund health spending account (HSA). Corporation pays all medical expenses tax-free (prescriptions, dental, vision, paramedical, medical devices, travel health insurance). Cost: $200-$400/year administration. No limit on coverage. More flexible than insurance. Requires active corporation and eligible business income.

Tax-efficient solution if maintaining holding company for investments. Corporation pays expenses reducing corporate tax while providing personal benefits tax-free.

Long-Term Care Insurance

Covers cost of home care or facility care if unable to perform daily activities. Canadian long-term care facilities: $3K-$6K/month. Home care: $30-$50/hour. LTC insurance provides $3K-$5K/month benefit. Cost: $200-$400/month for couple age 55-65. Premiums increase with age. Consider coverage by age 60 before health issues arise.

1 in 3 Canadians will need long-term care. Insurance protects retirement assets from depletion by care costs. Evaluate based on family history and asset level.

Critical Illness Insurance

Pays lump sum ($50K-$250K) upon diagnosis of covered critical illness (cancer, heart attack, stroke). Use funds for treatment, recovery, income replacement, or debt repayment. Cost: $150-$300/month age 55-60. More expensive after 60. Provides financial flexibility during health crisis. Consider if concerned about specific health risks.

Particularly relevant for early retirees (age 55-65) before full retirement income established. Provides cash cushion during health challenges.