Long Term Care (LTC)

Long-term care is not included under the Canada Health Act and therefore not available to Canadians on a universal basis.  Have you ever asked yourself how you would pay for long-term care if you really needed it?

Did you know that according to Statistics Canada, life expectancy in 1950 for a male was 66.8 years and in 2005 rose to 77.5, and life expectancy for a female in 1950 was 71.6 years and in 2005 rose to 82.4 years?  With life expectancy on the rise the risk of independence increases.  More than a third of Canadians over the age of 45 give care to an elderly person with a health problem.

  • 80% of the care to the elderly is provided by “natural caregivers” like spouses, children and friends.  This care has a price:
    • More than a third of caregivers assume some additional expenses (eg. to transport elderly to medical appointments)
    • 22% of caregivers have to miss work for a period of at least one month
    • 22% of caregivers have to reduce their working hours, take early retirement or quit their job
    • 41% of caregivers have to draw on their savings to survive

From age 65 to 74 – 1 out of 3 people have lost their independence and from age 85 or older – 4 out of 5 people have lost their independence.  The need for long term care insurance is driven by the importance of ensuring if you will have the money to pay for care if you are no longer able to care for yourself.

With this monthly and tax-free insurance benefit you may not have to withdraw from your savings, or rely on other sources of funding in the event that you are not able to perform 2 or more out of your 6 daily activities such as:

  • Bathing
  • Toileting
  • Dressing
  • Transferring
  • Feeding
  • Continence

In the event of the loss of an independence, long term care insurance will allow you your freedom to select the level of care that you can afford while remaining in the comfort of your own home without being a burden to others.  The benefit period that you may receive the monthly income is anywhere from 2 years to a lifetime.  You may also choose the waiting period of your benefit which is between 30 to 180 days.   One great feature with long term care insurance is the return of premium option.  At the time of death, the total premiums paid LESS any benefit already received by the insured, is paid out to the beneficiaries of the policy.

Long term care insurance allows you to preserve your assets and retirement savings as well as maintain your standard of living as possible.  You will be able to receive the necessary, immediate and affordable services while protecting your family’s financial security.

Long term care insurance preserves your quality of life, dignity and financial security.

* Sources:  Statistics Canada, Informal Caregiving for seniors, September 2012.  Canadian Institute for Health Information, Supporting Informal Caregivers-The Hear of Home Care, August 2010.  Statistics Canada, General Social Survey, Caregiving and Care Receiving 2007.