As a self-employed individual, you face the choice of saving up money for the occasional dental visit and/or prescriptions, but did you know that those benefits are actually costing more money that you think?

The money that you put away into that “rainy day” account will eventually become after-tax dollars. With a health/dental policy, you can deduct the premiums from your annual income (for income tax purposes – excluding life and critical illness premiums: I am not a tax consultant – so you will still have to speak to a qualified representative). That $100 that you save actually costs you up to $150 -depending on your tax bracket

Rarely are things ever black and white in today’s world – rather things seem to come in beautiful shades of gray. So when you think you could use health/dental coverage but you would rather just save the money up for it, consider the following:

1. Do you have coverage for alternative Practitioner’s care? (Chiropractor, Acupuncturist, Massage therapist etc)?
2. Ward vs semi-private Care: Does your provincial plan offer the free upgrade?
3. Did you know that the average cost of home nursing care is about $30/hr?
4. Did you know that there is a co-payment fee for using an ambulance?
5. Do you have insurance that replaces your income should you get sick?

You see, as a self employed person, you are the main breadwinner of that business. If you can’t work, the financial implications are drastic. Can your spouse support the family? What about your mortgage? rrsp? savings?

When considering a benefits plan, critical illness or disability insurance, you will not only have to weigh the cost to your monthly cash flow to pay for the benefit, but you will also have to weigh the cost of you getting sick or being disabled. Make informed and detailed choices because your business is on the line.