For the services that aren’t covered by your province or territory of residence, like dental care, private health and dental insurance plans can help offset the high cost of paying for services that fall outside government insurance plans.
If retirement is on the horizon, you may have already made your plans for health and dental insurance coverage. However, if retirement is a little further away and you’re counting on your company to provide benefits in your retirement, you may be in for a surprise.
Services Not Covered by Government Insurance
If you have always enjoyed health and dental insurance as part of your compensation package through your workplace, you may not have given much thought to the services that fall outside of the provincial insurance plans. You may have taken the coverage you received for prescription drugs, physiotherapy, vision care, and visits to the dentist’s office for granted.
Employer Benefits for Retirees
There was a time when employer health and dental insurance benefits for retirees were a foregone conclusion. That’s not the case anymore. In an effort to cut costs, more and more companies are increasing co-pays, reducing benefits, or cancelling retiree benefit programs altogether.
In fact, in a recent survey of 225 Canadian employers, 44% of the respondents answered that they don’t offer retiree benefits, and a further 10% will not offer benefits to future retirees. More than half of employers aren’t offering retiree benefits!
If you have been banking on your employer to cover your insurance needs in retirement, it’s clear that you need to make another plan.
Now is the Time to Explore Options
Paying for dental coverage out of pocket isn’t very expensive when you only have to consider cleanings and regularly scheduled x-rays. However, once major restorative services like bridges, crowns and dentures are factored in, dental care can become a very significant line on the household budget.
Many of us have been saving for retirement for a very long time. We probably have an idea of what our monthly expenditures will be, but that estimate may have assumed at least some continued insurance through your employer. There’s not much you can do to adjust your savings to cover health and dental insurance premiums if you’re already set to retire. However, if the finish line is a little further away, you can make changes to your plans so that your insurance needs are covered.
If you’re unsure of what your insurance coverage needs in retirement will be, talk to an insurance broker. Brokers are licensed professionals who work for you, not an insurance company. Get the facts about dental insurance, and then adjust your plan accordingly.