Hi there! You are on implied status wether what came first, the expiration of whatever immigration doc you have or the submission of your PR app with OWP.
The only difference now is since you said you're on a tight budget, personally I will and I have submitted an app for a change of status from worker to visitor, that way you wouldn't have to worry about any medical bill on case any accidents happen (Knock on wood), I only had to shed $75 for an extension. I'm not sure what province you reside but like cirene said, the only way you can extend your health coverage is when you have a valid immigration documents (implied status not honoured) like work permit for Alberta and if you're here as a visitor. If you hold a visitor visa, all you need to show them is a proof that you have filed for PR.. So the receipt or the AOR. So far, from what I've read in one of the members' post, he applied for a visitor visa and was granted a year. I guess it's because of how long step 1 is taking.
For your case, in my understanding, you lost your status before you submitted your PR app or something? I think yes you would need to restore and apply at the same time for an extension. You can double check with the call Center agents to be sure.
