Long-Term Care Insurance

Beautiful old couple is reading a book and smiling while sitting at home

Many Canadians believe the government health programs will be enough to support them when they are older if they become chronically ill or mentally impaired. However, each province subsidizes long-term care to a certain degree, and may cover only a part of their care of the assistance and supervision they may need. 

Long-term care can take on many forms but it is essentially to provide financial protection if you become unable to care for yourself due to an accident, aging, illness or cognitive disorders such as dementia or Alzheimer’s. It is often seen as an assistance with your ability to perform day-to-day activities such as taking medication, managing household chores, bathing, toileting, or dressing..

Is it worth it to buy long-term care insurance?

Whether you decide to purchase  long-term care insurance or not, is a personal choice.You may want to consider this coverage:

  • If you’re worried your retirement income may not last, and may not be enough to cover your medical bills or assistance care if you fall ill or develop cognitive disorders
  • You need financial resources to help you choose the type and level of care you need if you have an accident or need additional care later as you age
  • You need protection for your assets
  • You want to lessen the burden on care-givers and still be able to financially support yourself if you decide to live with your family

What age should you buy long-term care insurance?

If you are over the age of 40 years old and have assets to protect, but are not wealthy enough to pay for long-term care out of their savings, they should consider purchasing long-term care to ensure they are financially ready for what might happen. This is especially important if you have a history of family illness or longevity. 

It is very important to apply while you are still healthy. Long-term care insurance policies are usually guaranteed renewable, meaning once you qualify, you’ll be able to maintain your policy as long as you pay the premiums. 

The premiums are based on a person’s age at the time the purchase is made and rates are locked in for the duration of the policy. Long-term care insurance is paid with after-tax dollars, so this type of insurance benefits are tax-free. 

How is my application for long-term care insurance assessed?

Your insurance premiums will vary depending on your age and health when you apply. The healthier and younger you are the more affordable it will be. Premiums will also be depended on the:

  • The type of coverage you choose 
  • The period of time you will receive benefits 
  • The waiting period you select (30 to 180 days or longer) – the longer the waiting period the less expensive your premiums will be

When you’re approved for coverage and the policy is issued, you begin paying premiums.

You’ll be eligible for benefits when you can’t do at least two out of six activities of daily living on your own or you suffer other cognitive impairment.

The activities of daily living are:

  • Eating
  • Toileting (getting on or off the toilet)
  • Caring for incontinence
  • Bathing 
  • Dressing
  • Transferring (getting in or out of a bed or a chair)

When you want to make a claim, the insurance company will review your documents from your doctor and may ask for an evaluation. Long-term care insurance coverage gives you the financial freedom to ensure you are protected in case of an illness or cognitive impairment when you are older. You can also obtain the best care possible in your own home or in a long-term care facility. Plan ahead with Easy-Insured. Talk to a financial advisor to learn more about long-term care, including benefits, and eligibility. 

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