Health insurance after leaving a job in Canada

When you leave your job, your group health and dental insurance coverage typically ends with your employment. This gap in coverage can leave you and your family vulnerable to unexpected health-care costs.

The good news is you have options to maintain your protection. Understanding what happens to your benefits and exploring your choices now can help you avoid costly gaps in coverage.

What happens to your health insurance when you leave your job? 

When employment ends, whether through layoff, resignation, or retirement, your group health and dental benefits generally end on your last day of work. Under most group insurance plans, coverage is tied directly to employment status.

Layoff vs. voluntary departure: 

• If laid off: Benefits may continue for a few additional weeks depending on your employer's policy 
• If leaving voluntarily: Coverage typically ends immediately 

The bottom line: It's critical to act quickly to secure replacement coverage and avoid gaps.

Your 60-day window to apply 

The timing can matter significantly. To avoid gaps in coverage, apply for individual health insurance as soon as your group coverage ends. Many insurance providers allow transitions from group to individual plans within a specific timeframe. 

Sun Life's Health Coverage Choice is designed specifically for this situation. If you're leaving a workplace insurance plan with any Canadian insurance company, you can apply within 60 days without requiring a medical exam. This guarantee eliminates the risk of being denied coverage during this transition period. 

Example timeline: If your coverage ends March 31st, you have until May 31st to apply.

What coverage options are available after you leave your job? 

You’re not without options if you leave your job or get laid off. You have three main pathways to maintain health coverage:

Option 1: personal health insurance (PHI) 

You can replace your group benefits by switching to a PHI plan. This option is designed to help Canadian residents cover medical expenses not included in provincial or group benefit plans. We offer three tiers of coverage; Basic, Standard, and Enhanced, each offering different levels of coverage. 

Get a personal health insurance quote

Option 2: Sun Life Health Coverage Choice  

Best for: Those leaving a workplace or retiree group benefits plan who want to continue existing coverage without interruption. 

Key advantages: 

• No medical underwriting required when you apply within 60 days of losing group coverage 
• Coverage for you, your spouse, and dependent children 
• Customizable plans to match your health-care needs 
• Options for dental, prescription drugs, and paramedical services 
• Especially valuable if you have pre-existing conditions: Your previous coverage carries over, and pre-existing conditions are automatically covered 

Please note that you must be covered under a provincial health insurance plan to be eligible for Health Coverage Choice. 

Start your application

Option 3: provincial health coverage 

As a Canadian resident, you're covered by provincial government health insurance. However, it's important to understand what’s not typically covered by provincial plans, such as: 

• Routine eye exams (for those aged 19–64) 
• Glasses or contact lenses 
• Prescription medications outside hospital settings 
• Paramedical services (physiotherapy, acupuncture, naturopathy, nutrition services) 
• Dental services, orthodontia, and dentures 
• Hospital amenities beyond standard ward rooms 
• Ambulance services 
• Medical equipment 
• In-home nursing 

If you need any of these to be covered, you may want to consider additional health insurance coverage options.

Special note for Quebec residents: All Quebec residents must maintain prescription drug insurance either through the Régie de l'Assurance Maladie du Québec (RAMQ) or through group or individual benefits plans. An individual plan does not replace RAMQ coverage, and you cannot opt out of RAMQ by obtaining an individual plan. 

Special note for British Columbia residents: Provincial health care coverage is optional in BC; however, applicants to Health Coverage Choice (HCC) must have BC provincial coverage to be eligible.

Comparison: which option Is right for you?

What about your other workplace insurance? 

Beyond health coverage, you may have other workplace insurance benefits that would end should you leave your job:

If you're self-employed or transitioning to a role without group benefits, continuing these types of coverage becomes even more critical. Consider the financial impact on your family if you were unable to work or if something happened to you.

Get started 

Don't wait until after your employment ends to think about your health insurance. Review your coverage needs and explore your options while you're still employed. This proactive approach can ensure you maintain continuous coverage and avoid unexpected health-care costs.

This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.