How to Protect Your Finances With Insurance As Canadian Newcomers

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How to Protect Your Finances With Insurance As Canadian Newcomers

Table of Contents

Just arrived in Canada? If so, it’s time to get your finances in order.

As Canadian Newcomers, you’ll need to get your insurance quickly. It’ll protect you financially in emergency situations. Below, we’ll discuss how to do so for your vehicle, home, health, and life!

First – Health Insurance for Newcomers

One of Canada’s best perks is its healthcare system, which is universal. A Canadian resident gets public healthcare, costing them little to nothing.

With that, you’ll need a health insurance card to use those benefits.

Each of Canada’s provinces and territories has its own insurance plans. The coverage you’re allowed differs from one area to another.

In some provinces, a newcomer is expected to wait three months to get coverage. If that’s a place you’re moving to, we recommend getting temporary private insurance during the wait time.

However, keep in mind that all territories and provinces offer emergency medical assistance for free – even if you lack an insurance card.

In case you end up with a medical emergency, be sure to visit the nearest hospital.

Second – Car Insurance

Car insurance is mandatory for all drivers in Canada.

For new car financing, we recommend Scotiabank. You’ll get affordable and easy insurance that’ll protect you from vandalism, car accidents, and unfortunate events.

But do note, rates vary depending on the driver, insurer, and area.

We recommend researching your insurance options before getting a car since vehicles with higher rates don’t cost much to insure. Also, check how cars are rated at the Insurance Bureau of Canada.

Maintain a healthy credit rate, which will reduce your insurance costs.

How Much Coverage Do You Get?

In most Canadian territories, liability insurance will cost $200,000 minimum. But, we recommend a safer option of $2 million.

Considering how costly accidents can be, you’ll need enough insurance for you and the other individual’s car repair (and possible health costs).

If the cost of losses/damage is greater than your liability limits, you’re required to pay the settlement balance yourself, which may prove to be too much money.

Third – Home Insurance

Whether you’re buying or renting a new home, you need insurance. It’ll guard your possessions from theft and damage.

Here, tenant or home insurance isn’t needed. However, the majority of mortgage lenders will necessitate you to have home insurance before approving your loan.

Do note that this is optional. It’s an extra cost, so ask yourself whether it’s necessary or not.

Usually, getting this insurance is a good safety net.

The only hope is you’ll never have to rely on that safety net. But it’s still there in case a mishap happens, which can include:

  • Personal bags with important items – like jewelry, laptops
  • Visitors injuring themselves unexpectedly near your home
  • Natural disasters leading to a power outage for a few days

If you’re renting, we recommend buying a tenant’s insurance to cover the scenarios above.

Fourth – Insurance From the Unknown

This is another option for insurance. It’s called life insurance, which protects loved ones in case you pass away.

This insurance alleviates many financial problems, such as:

  • Student debts
  • Education costs for your children (years ahead)
  • Funeral costs

You can either get permanent life or term life insurance. Term life plans last for a set time period, ranging from 10-20 years. Whole life is much more expensive, but lasts throughout your lifetime, and lacks limitations.

At GlobalRCG, we help individuals and families achieve a higher quality of life and greater financial security through a second residence, relocation, citizenship, and passport programs. We take the hassle out of the process and provide peace of mind. To check your eligibility, submit our assessment form today!