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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.
Get help with your long-term care insurance planning.
Speak with a professional advisor who can help.
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
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.
Get in touch
Talk to an advisor who can understand your situation, answer your questions and help you build an insurance plan appropriate for you and your family.
Frequently asked questions
Answers to key questions about Long Term Care Insurance
Contrary to common belief, Canada's public healthcare system does not fully cover long-term care in nursing facilities. Provincial and territorial health plans may subsidize some medical and nursing care costs, but typically not the full expenses, especially room and board in care facilities. Individuals often bear a significant portion of these costs, highlighting the importance of planning for long-term care expenses.
Few insurers offer dedicated long-term care plans in Canada. Some, like Manulife, RBC Insurance and Sun Life, provide long-term care coverage as a conversion option on other policies, such as disability or critical illness insurance.
In Canada, a significant number of individuals over 65 are likely to require long-term care. Estimates suggest around 70% may need such care in their lifetime, highlighting the importance of including long-term care in retirement planning.
Still have questions?
Please contact our office and we'll be happy to address any questions you may have.
