A Guide to Family Health Insurance in Canada
What is family health insurance?
A family health insurance plan is a private plan you buy to cover multiple members of a household under one policy, providing a variety of healthcare services (as opposed to an individual plan, which only covers one person).
Public coverage in Canada only covers medically necessary services, with dental (CDCP) and vision available to those who meet strict eligibility requirements. That’s helpful, but it’s not enough to meet the health needs of most Canadian families.
Family health insurance in Canada complements the provincial care you receive with your health card. Covered services depend on the family plan, but here’s what private family health insurance plans may include:
- Preventive care
- Prescription medication
- Dental care
- Vision care
- Mental health
- Paramedical care (chiropractic, massage, physiotherapy)
How family health insurance works in Canada
Family health insurance helps protect your family from high out-of-pocket expenses by sharing the cost of health care with an insurer in exchange for paying them a monthly premium. Family health plans can help close gaps left by government health coverage or modest group benefits from employers.
The majority of Canadian families report paying out-of-pocket for healthcare expenses that could have been covered by a family plan: 60% have paid for dental, 55% have paid for prescriptions, and 54% have paid for vision care.
Unlike individual health insurance plans, where each person can choose their coverage, family plans offer the same coverage for each family member.
- Basic plans are usually centered on preventive and routine care, with smaller caps on covered services.
- Enhanced plans cover more services (dental, vision, paramedical) with moderate caps.
- Comprehensive plans cover major services and broad paramedical care with higher reimbursement rates.
Many employers offer fully paid or heavily subsidized health benefits for employees, though customizability is limited and coverage is tied to your employment. If your group benefits plan meets your family’s health needs, you may not need private family health insurance. However, if your group plan leaves gaps or you’re one of the 36% of Canadians who are concerned that their work coverage may be reduced or eliminated due to economic instability, a private plan may be a good option.
What does family health insurance cover?
The nitty-gritty details matter, so let’s take a closer look at what family health insurance covers in Canada. Remember: every policy is different, so read yours carefully before committing.
Dental
Most basic dental plans cover preventive dental services and minor treatments, typically with around 70% reimbursement. Higher-tier plans may cover major care, though there may be a mandatory waiting period.
Dental care is the most commonly delayed service, and 35% of Canadians report that they’ve skipped or reduced dental visits due to cost.
Vision
Exams and bi-annual vision supplies are common inclusions in policies with vision care. Major procedures are only covered with higher-tier plans and usually have a lower cap, like 50%.
Prescriptions
Private family health plans may cover a higher share of medication costs than your provincial plan—and private plans may cover specialty drugs and supplies that aren’t eligible for coverage by a government plan.
Paramedical services
Alternative medicines are covered less frequently than conventional (allopathic) services. Annual limits for medical care in each category apply, sometimes as a per-person cap and sometimes as a general paramedical limit for the whole family.
Mental health services
These usually fit under the “paramedical” umbrella of coverage, but it’s worth calling out these services specifically. Enhanced plans offer the most mental health coverage and the highest reimbursement rates.
Fertility
Fertility treatments are usually only covered by top-tier family health plans, and annual/lifetime maximums apply.
Gender-affirming care
GAC is usually only covered by top-tier family health plans, and co-insurance is common. There are usually per-procedure and lifetime maximums. GAC services sometimes fall under the “prescription” or “paramedical” categories.
Other services
Some policies offer travel insurance and private hospital top-ups (private or semi-private rooms, vs. the public ward coverage offered by provincial care). Inclusions vary by plan and provider, so it’s important to understand what is and isn’t covered by your plan before you commit to it.
Note that family health insurance policies do not usually cover elective, cosmetic, or experimental treatments.
Some insurers have preferred providers, but in Canada, you generally aren’t restricted to specific providers to be eligible for coverage under your family plan.
How much does family health insurance cost in Canada?
Family health insurance in Canada can cost anywhere between $150 and $600 per month. The average range for a mid-tier family plan that covers two adults and two children is between $200 and $400 per month.
Our data shows that BC residents are spending the most on out-of-pocket health and dental expenses, at $1,188 per year on average. Saskatchewan residents pay the least at $908 per year.
Here are sample per-person monthly rates for PolicyMe’s guaranteed-issue health plans:
Several factors can impact the cost of your family's health insurance:
- Family size: The more people covered under your plan, the higher your health insurance premiums
- Ages: Prices rise as you move from one age group to another.
- Coverage: Higher-tier plans with more covered services and higher limits cost more
- Province: The cost of healthcare varies regionally (as do insurance regulations)
- Health status: People with a history of health issues may pay more for underwritten health coverage
The best family health insurance options in Canada
For many families, the best family health plan is one that offers moderate coverage for dental, vision, drugs, and paramedical services that align with real-life needs.
Here are the top providers of family health insurance in Canada:
- PolicyMe: A digital insurance solution with guaranteed-acceptance policies and a range of plans for families. Known for competitive pricing and strong online customer service.
- Manulife: A national insurer with modular plans and conversion options from employer plans. Known for employer portability.
- Sun Life: A popular insurance company offering various types of insurance. Known for strong drug and dental insurance.
- GreenShield: A non-profit insurer that offers mostly supplemental care. Known for paramedical and wellness coverage.
Now here’s a look at a few specific plans to compare coverage.
To find a best-fit policy, families should compare their needs for routine vs. high-cost services.
For one family, the ideal policy might look like a top-tier plan that covers major dental work and physiotherapy, since one child plays hockey and the mom runs marathons. Another family might prefer a policy that covers fertility treatments and travel benefits. Every Canadian family is different.
How to choose a family health insurance plan
To find the right plan for your family, you’re going to balance cost and coverage—and that means doing a little math. Here’s how to pick a right-sized family health plan that covers important health expenses without over-insuring you.
1. Evaluate current and future healthcare usage
Start with a review of the healthcare services you currently utilize.
- List each person in your family
- What services have they needed in the past?
- What services might they need in the future?
For past expenses, your bank statements can tell you what you’ve spent on health care. Look for things like dentist appointments, out-of-pocket massages, and glasses or contact expenses, then add it all up.
For future expenses, you don’t need a crystal ball. Think about upcoming changes in your family’s life, like sports, orthodontics, therapy, vision, prescriptions, and therapies. Up to 75% of kids could benefit from orthodontics, and many people start to need glasses around age 40.
You might not be spending enough on health care right now if you’re like 71% of uninsured Canadians (or 52% of insured Canadians!) who have delayed, skipped, or reduced health spending due to cost. Add a little buffer to your estimated health expenses to account for all the times you delayed care because it was going to cost too much out of pocket.
2. Compare coverage options
Now, compare your coverage options (private, public, and employer plans) to fully understand the cost and gaps of each.
Government health insurance provides low- or no-cost basic coverage, but excludes many extended health benefits:
Employer-sponsored family health insurance can be cost-effective if you’re eligible, but coverage limits may not fully meet your family’s needs.
Private family health insurance offers the most flexibility and customization, with higher limits and many paramedical services covered.
For each policy you’re considering, review the coverage model, cap, and exclusions for each type of service you expect your family to need. Compare the policy costs against your estimated out-of-pocket healthcare expenses without insurance to see whether it will realistically save you money.
Is family health insurance worth it?
Family health insurance is worth it when it essentially pays for itself by preventing substantial out-of-pocket costs and ensuring your family gets the care they need when they need it.
- Cost-vs-benefit: If your family is delaying or avoiding care because it’s too expensive, or if you’re frequently paying high out-of-pocket medical bills, health insurance can tip the balance in your favour.
- Targeted coverage: Choosing the right plan means you’re not paying for unnecessary extras, but you are getting meaningful support for predictable expenses.
Our data shows that 60% of Canadian families are paying dental costs out of pocket, and 55% are paying out of pocket for prescriptions, which means that the right health insurance can make a big financial difference for most households.
FAQ: family health insurance
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.
Prices listed on this page are based on information available as of October 2025. The prices shown are for general reference only and may vary based on factors like your age, location, and product selection.