‏‏ Protect your finances as a Canadian newcomer with insurance - Mobilyardim

Protect your finances as a Canadian newcomer with insurance

Published on January 11, 2022 at 9:00 AM EST

One of the most important things you can do as a Canadian newcomer is to get your finances in order right away.

This includes taking out your insurance so that you are financially protected in the event of an emergency. Here’s everything you need to know to start the insurance process for your health, home, vehicle and life.

Apply for health insurance as a newcomer

One of the biggest benefits of moving to Canada is the great universal health care system. Canadian residents receive public health care, meaning most health care costs will cost you nothing. To take advantage of these benefits, you must apply for a health insurance card.

Each province and territory has its own health insurance plan, and coverage may vary by region. Some counties require new entrants to wait up to three months to get coverage. If you move to an area where you have to wait, you’ll need to get private health insurance to cover that gap. Keep in mind that all provinces and territories offer free emergency medical care, even if you don’t have a health insurance card. If you have a medical emergency, go to the nearest hospital.

You can research your new area’s health insurance requirements by visiting their site:

All drivers must have car insurance in Canada

Scotiabank makes financing a car as a newcomer easy and affordable, and with car insurance you are protected in the unfortunate event of a car accident or vandalism. If you own a vehicle in Canada, you must have auto insurance and rates vary by area, insurer and driver.

If possible, research insurance options before shopping, as cars with better ratings are cheaper to insure. You can check a car’s rating through the Insurance Bureau of Canada. Keeping your credit healthy will also reduce the cost of your insurance policy in some areas.

It can be tempting to choose the cheapest compulsory insurance you can find. For most areas in Canada, the minimum liability insurance requirement is $200,000, but $2 million in coverage is a safer choice. Keep in mind how expensive an accident would be if you are at fault. Not only do you need adequate insurance to cover the repair and medical expenses of the other person’s vehicle, but you are also responsible for any property damage caused by the accident. If the cost of the losses or damages exceeds your liability limit, you will have to pay the settlement balance yourself, which can be a significant amount.

Home insurance for new Canadians

Whether you’re buying or renting a new home, you need insurance to protect your belongings from damage and theft. Unlike car insurance, home contents or renters insurance is not mandatory. But most mortgage lenders will require you to purchase home insurance before approving a loan.

Since home insurance is an additional cost, you may wonder if you really need it, especially if your new home purchase looks in good condition. But it is often a good idea to take out this form of insurance as a safety net. The hope is that you will never need those safety nets, but they are there in case something bad happens. Even if you never have to repair damage to your home, consider these common accidents that may be covered by home insurance:

  • An ice storm will have your power out for a week and your fridge and freezer full of food to rot. Some insurance companies cover food losses due to a power outage.
  • A visitor trips over an uneven spot in the lawn and twists his ankle. Insurance can cover their medical costs and protect you from potential lawsuits.
  • Your bag containing a laptop and personal jewelry will be stolen from your vehicle. Your home insurance covers car theft, even if it occurs far from where you live.

If you’re renting a home, you’ll need to get renters insurance to cover the same scenarios above. Even though you don’t own the building, your renter coverage protects your personal property and your finances in the event of accidental damage.

Protect against the unknown with life insurance

Another optional, but essential insurance policy that you must sign up for as a Canadian newcomer is life insurance. Life insurance protects your loved ones financially after your death. Whether you are single, newly married or divorced, life insurance protects those you leave behind from some financial hardships, such as:

  • Funeral expenses
  • Student debts: Even if you are single and your parents have taken out loans for your higher education, if your parents are named as beneficiaries, your life insurance policy could repay those.
  • Future education costs for your children

There are two types of life insurance policies: term life insurance and permanent life insurance. A term life insurance policy is an insurance policy that you can take out for a specific period of time, for example 10 or 20 years. Full life insurance is more expensive, but it is valid for the duration of your life and has no restrictions. Money obtained from both types of life insurance policies is tax-free and paid out in one lump sum.

Arriving in a new country is both exciting and challenging. Scotiabank’s financial advisors are experienced in helping newcomers to Canada get their new adventure off to a good start. Find out how as a newcomer you can open a new account, build up your credit and even get a home or car loan.

Legal disclaimer: This article is for informational purposes only. It should not be relied upon as investment advice or a guarantee for the future, nor should it be construed as a recommendation to buy or sell. The information in this article, including information related to interest rates, market conditions, tax regulations and other investment factors, is subject to change without notice and The Bank of Nova Scotia is not responsible for updating this information. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia cannot guarantee their accuracy or reliability. Readers should consult their own professional adviser for specific investment and/or tax advice tailored to their needs to ensure that individual circumstances are duly taken into account and that action is taken based on the most recent information available .

Like it? Share with your friends!