Long term care insurance
A valuable optional add-on to Critical Illness policies that enables you to maintain your independence when you can no longer care for yourself.
What is long-term care insurance?
Long-term care insurance in Canada addresses a critical gap in the public health care system, which many Canadians mistakenly believe covers full-time care in long-term facilities. This insurance is essential for financial protection in cases where individuals lose their independence due to chronic illnesses, disabilities, cognitive impairments like dementia, or other age-related conditions. These situations often render individuals unable to perform daily living activities without assistance, highlighting the importance of having a financial safety net.
Long Term Care insurance is versatile, designed to cover the costs of care services in various environments, whether at home or in a specialized facility. This adaptability ensures individuals can choose the care setting that best suits their needs. Historically offered as a standalone product, Long Term Care insurance has evolved and is now primarily available as an optional addition to Critical Illness policies.
Maintain dignity
Long-term care insurance ensures dignity and quality of life by providing tailored support in your chosen care setting.
Financial protection
Safeguard your finances and retirement savings from the high costs of chronic illnesses, preserving your financial stability.
Caregiver support
Offers financial and emotional relief to caregivers, enhancing the care experience for both you and your loved ones.
How does long-term care insurance work?
Long-term care insurance is designed to provide financial support when you experience a cognitive impairment or are unable to independently perform at least two activities of daily living (ADLs). Coverage typically activates after a waiting period, which usually ranges from 30 to 90 days, at which point the insurance begins to pay out benefits.
Activities of daily living:
- Bathing
- Dressing
- Transferring (moving from one place to another)
- Toileting
- Maintaining continence
- Eating
Methods of benefit payment:
- Income-Style Benefit: This option provides a fixed monthly benefit amount.
- Reimbursement-Style Benefit: This option reimburses you for actual expenses incurred, up to a specified maximum limit
Care with dignity
The benefits of long term care insurance
Long Term Care insurance is a crucial tool for managing the financial challenges associated with home or facility care. It offers several key advantages:
- Home Care Flexibility: It enables you to bring necessary care into your home, providing an alternative to downsizing or moving to a facility prematurely.
- Support for Caregivers: By lessening the financial and emotional strain on caregivers and family members, it ensures that your care does not become a burden to loved ones.
- Coverage for Unexpected Events: Whether due to a severe accident or sudden health decline at any age, this insurance helps manage the costs and logistics of substantial assistance from caregivers.
- Retirement Income Protection: It plays a vital role in ensuring that your retirement savings last throughout your lifetime, even if your health deteriorates.
- Preserving Dignity: In cases of health decline, it helps maintain your dignity and quality of life by providing for your care needs in a respectful and supportive manner.
Frequently asked questions
All questionsDoes Canada’s public health care system cover long-term care costs?
Only partly. Provinces and territories fund the health care in publicly funded long-term care homes, but residents pay a monthly accommodation charge for their room and meals. How much help at home is publicly funded varies by province, and care in a private retirement residence is usually yours to pay.
Is long-term care insurance available in Canada?
Yes, though it’s generally no longer sold on its own. It’s mainly available as an option you add to a critical illness policy, and some critical illness policies let you convert your coverage to long-term care insurance later in life.
Why do people include long-term care in their financial planning?
Because care can last for years, and public programs don’t pay all of it. If you can’t manage two or more activities of daily living, such as bathing or dressing, or you develop a cognitive impairment such as dementia, you may need help at home or in a care home. Planning ahead, with savings, insurance or both, keeps that cost from falling on your retirement savings or your family.
Related to long term care insurance
- Critical illness insurance A lump sum if you’re diagnosed with a covered illness, such as cancer.
- Life insurance Protects the financial security of the people who matter most.
- Disability insurance Replaces part of your income if illness or injury stops you working.
- Health and dental insurance Coverage for health and dental costs your provincial plan doesn’t pay.
A question about your coverage? Ask us.
No obligation. We’ll tell you plainly what we think, including when you already have what you need.