Long Term Care Insurance

Long-term care insurance in many cases is compared to disability insurance. Long-term care insurance covers expenses if an individual requires in home care or if an individual requires a care facility such as a nursing home or long-term care facility. This type of insurance is not extremely popular in Canada which is surprising considering Canada’s shifting aging demographic. 

Individuals planning for the later stages in life and the care associated with aging in essence have to consider two things; whether they want to save enough to cover care costs or, whether they want to purchase suitable long-term care coverage to provide protection. 

Things to consider:

  • Can you cover insurance premiums for long-term care insurance?
  • How much can you save per year to help with future long-term care costs?
  • Would you be comfortable in a semi-private room in a care facility, or would you want a more costly private room?
  • Will you be relying on family members to help care for you? And do they know this?
  • Do you have health issues in your family that are hereditary?
  • Do you anticipate qualifying for Old Age Security which can help offset some of the costs associated with care facilities?
  • Will you qualify for Canada Pension Plan (CPP) and what is your expected pension?
  • Do you save in RRSPs and have you estimated the potential income this can generate upon retirement?
  • Are you a member of a private pension plan, such as a defined benefit plan which provides set monthly pension payments?

Long-term care insurance can be quite expensive, and insurance premiums severely increase as one gets older. If individuals or families have significant savings or pensions, then in many cases long term care insurance would not make sense. However, individuals have unique circumstances and proper insurance planning and financial planning is extremely important. Ensure in depth discussions and analysis is done with accredited and experienced life insurance agents. 

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