Best Health Insurance for Seniors and Retirees in Canada (2025 Guide)

As Canadians move into retirement, priorities shift, and health becomes one of the most important. Even with our public healthcare system, there are still significant costs that can catch retirees by surprise.

Dental care, vision care, prescription drugs, hearing aids, and paramedical services often are not fully covered by provincial health plans. As we age, those “extras” become essentials, and the bills can add up quickly.

This guide helps retirees and older Canadians understand how private health insurance can complement government programs, what options exist for different health situations, and how to choose the right coverage for your lifestyle and budget.

Why Seniors Need Private Health Insurance

Canada’s public healthcare system covers many essential medical services, but it does not cover everything you may rely on as you age.

Private health insurance helps bridge those gaps, ensuring that ongoing care, prescription medications, and specialized treatments do not have to come entirely out of pocket.

Here are some of the most common health expenses for older Canadians that often fall outside of provincial coverage:

• Prescription medications not listed on the provincial drug formulary for seniors drug benefits
• Dental cleanings, fillings, or dentures
• Eye exams, eyeglasses, or contact lenses
• Hearing aids and related testing
• Physiotherapy, chiropractic care, and massage therapy
• In-home nursing care or medical equipment
• Mental health counselling or therapy

As we age, these services shift from “nice-to-have” to “essential.” Private coverage ensures you can access them when needed, without financial strain.

What Is Covered Under Government Health Plans

Across Canada, public healthcare covers “medically necessary” services such as doctor visits, hospital stays, and emergency care. However, the coverage gaps grow wider with age, particularly after retirement when employer benefits often end.

Each province and territory manages its own plan, and while the details vary, most follow similar patterns. Here is how government coverage generally compares with private senior health insurance:

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Private insurance gives retirees flexibility and control, allowing them to choose the services and limits that match their lifestyle and evolving health needs.

The Hidden Gaps: Prescription Drugs and Paramedical Care

Two areas cause the most unexpected costs for retirees: prescription medication and paramedical services.

Prescription Medications

While provincial plans provide partial coverage for seniors, most have restrictions based on income, age, or the specific drugs listed on the provincial formulary.

If you take multiple prescriptions or use medications not included in your province’s list, out-of-pocket costs can quickly rise. Private health insurance can cover a wider range of medications, including brand-name and newer therapies.

Paramedical and Preventive Care

As we age, maintaining mobility and independence becomes essential. Services such as physiotherapy, massage, chiropractic adjustments, and counselling help seniors stay active and manage chronic pain or mental health challenges.

However, these services are rarely covered by provincial plans. Without private insurance, a retiree could easily spend several thousand dollars per year on treatments like physiotherapy, occupational therapy, and counselling.

Types of Private Health Insurance for Seniors

Private health insurance plans for seniors generally fall into three main categories, depending on your health history and whether you are transitioning from group benefits.

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If you are retiring soon and currently have group health benefits, applying for a Guaranteed Issue (Conversion) plan can help you avoid new medical underwriting and maintain continuous coverage.

How to Choose the Right Plan

Selecting the right senior health insurance plan involves balancing your current needs, future care expectations, and budget. Here is a simple step-by-step approach:

1. Review what you already have: Check your government coverage and any group benefits that may continue after retirement.
2. Identify your gaps: Make note of what you are paying out of pocket, such as dental cleanings, prescriptions, or physiotherapy. These are clues to what your private plan should include.
3. Evaluate your health and lifestyle: Consider how active you are and what services you may need over the next decade. Retirees who travel, stay active, or manage ongoing medical conditions should look for plans that cover travel medical and ongoing prescriptions.
4. Compare plans carefully: Look at annual and lifetime maximums for each coverage type. A cheaper plan may save money short term but cost more in the long run if it has low limits or exclusions.
5. Apply while you are healthy: Premiums and eligibility are generally more favourable the earlier you apply. Once health conditions develop, options can narrow and premiums rise.

Example: The Harrisons, Retired in Canada

The Harrisons, both in their early 60s, recently retired from long careers and lost their employer-sponsored health benefits. They both take prescription medications and visit a physiotherapist regularly to stay mobile and manage arthritis.

They compared options on Aeva.ca and chose a senior health insurance plan that includes:

• $1,300 in annual prescription drug coverage per person
• 100% coverage for physiotherapy and chiropractic care
• $200 in annual vision coverage
• Travel medical coverage for trips within and outside Canada

Their monthly premium is $380, which helps them budget confidently for predictable health costs. Without insurance, those same expenses could easily exceed $5,000 annually.

How to Reduce Costs and Improve Tax Efficiency

If you are retired but incorporated, or still run a small business, you may be able to deduct health insurance premiums as a business expense through a Private Health Services Plan (PHSP) or Health Spending Account (HSA). For this an active corporation is required (i.e. the corporation must be generating revenue).

Even if you are fully retired, you may still be able to claim eligible premiums and out-of-pocket medical costs through the Medical Expense Tax Credit (METC)

For more information, see: How to Write Off Health Insurance Premiums When You’re Self-Employed in Canada (2025)

Bottom Line

Canada’s healthcare system provides a strong foundation for seniors, but it does not cover everything. Private health insurance helps retirees protect their savings, access important preventive care, and maintain a high quality of life well into their later years.

The right plan allows you to stay active, manage your health proactively, and reduce financial stress during retirement.

Take the Next Step

Compare Canada’s top senior health insurance plans in minutes at Aeva.ca

It is quick, transparent, and designed to help retirees find coverage that supports their health, independence, and peace of mind.