Entrepreneur Coverage

Disability Insurance

The greatest asset that most people have is their ability to earn an income. You need disability insurance to insure your income in the event that your ability to work is cut short due to an injury or illness.

Benefits often begin after 90 days of disability and continue until your 65th birthday.

To qualify for coverage, you need to be in excellent heath and have a good earnings record with no absenteeism.

Travel Insurance

Don't leave your province without adequate travel insurance. Medical costs in another jurisdiction can wipe out your savings.

Coverage can cost as little as $112 annually per family.

Health Insurance

Individual medical and dental insurance is available but healthy people often find it too expensive and sick people often can't qualify. Provincial plans cover the most expensive medical products and services. Regular expenses that you know about are not good candidates for insurance since there is little risk for you to insure.

The cost for limited medical and dental insurance is $70 per adult under age 45.

Tax Savings

You can make contributions to a Health Spending Account and get reimbursed for all of your medical and dental expenses with those funds. The administration charge is only 10% of contributions.

Taxation

The cost of health (medical and dental) benefits is a deductible business expense. The benefit can be insured or uninsured but don't forget to pay the Provincial Premium Tax, Provincial Sales Tax and Goods and Services Tax.

Profit required to pay $1,000 health expenses
Region Using a PHSP Personal Expense
Quebec $1,232 $2,000
Ontario $1,217 $2,000
Newfoundland $1,151 $2,000
Other Regions $1,107 $2,000

Profit required to pay $1,000 health expenses
Region	Using a PHSP	Personal Expense
Quebec	$1,232	$2,000
Ontario	$1,217	$2,000
Newfoundland	$1,151	$2,000
Other Regions	$1,107	$2,000

Deductibility of Health Plan Premiums for the Self-employed

Individuals who are primarily self-employed (if other income is less than $10,000 or less than 50% of total income) may deduct medical and dental premiums.

All full-time employees must be covered.

If less than half of the employees are at arm's length (unrelated) than the maximum annual deduction limit per employee is $1,500 plus $1,500 per dependent (spouse & child) 18 and older plus $750 per dependent child under the age of 18.