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Long Term Care

We all plan on being healthy throughout our lifetime, but sometimes getting older can prevent us from doing things that we now take for granted. Part of planning for your golden years means considering the possibility that you'll need long-term care.

The cost for private non-subsidized retirement homes in Canada range from $2,500 to over $7,000 a month. Certified facility (government subsidized) can cost between $800 and $3,000 per month (after the subsidy). Costs for 24 hour in-home nursing care can exceed tens of thousands of dollars.

Now add to the mix, the fact that the public facilities are currently overtaxed and understaffed, and factor in that the Boomer generation is aging and beginning to move through the system. When the bulk of the Boomers require this care in 15 – 20 years, what will they face? Will the costs skyrocket? Today, a long-term stay in a facility can eliminate a retired couple’s assets in just a few years. This is truly a financial meltdown of the worst kind, because they would have no way of recovering.

The newest addition to the Living benefits lineup is long term care insurance (LTCI). It provides you with the service and support you need to maintain your day-to-day activities should a chronic illness or cognitive impairment keep you from being able to take care of yourself. It provides the funding for this eventuality in a cost-effective manner. Long term care insurance lets you live for today while caring for tomorrow.

Won't the government look after me when I'm old?

People are living longer today than ever before. According to Statistics Canada, 21% of the population will be over the age of 65 by the year 2026. We're living longer because we're taking better care of ourselves…through exercise, better eating habits and we have better health care available.

Medical advances mean that diseases that caused death in the past now just cause disability. That's the good news. But living longer costs money. Have you factored living longer into your retirement plans?

Many of us think the government will look after us in our old age. If you become chronically disabled or mentally impaired, your provincial government plan may cover only a portion of the care, assistance and supervision you may need.

If you do qualify for a full government subsidy, you will have to abide by their terms and conditions – government nursing homes, government regulated home care and only the benefits allowed within their parameters.

The subsidy level for nursing home care is reviewed annually. If your income exceeds this level, you would be eligible for only a partial subsidy, or you could receive no subsidy at all on the cost of your accommodation.

How expensive can long term care be?

The quick answer is "more than you think!" Private nursing homes can cost more than $3,000 per month. Government nursing homes can cost less, but often have long waiting lists. Home care providers, which may include a private registered nurse, charge a rate of approximately $35 per hour. Less skilled care, like assistance with eating or light housework, can cost at least $15 per hour.

My family will look after me

With the demands of everyday living, few people are in the position to devote the hours per day it takes to care for a loved one, no matter how much they would like to do it.

A recent Canadian Study of Health and Aging states that the reduction in the number of people able to provide informal care to family members will add to the increased demand for high-cost institutional care.

How can Long term care insurance help me?

Long term care insurance should be part of your financial future so you can take control over the quality of your care, as well as eliminate many out-of-pocket expenses. Long term care insurance lets you receive the care you need in the comfort of your own home, or it also provides comprehensive coverage for nursing home care, should you need it.

You can purchase most Long term care coverage from age 40 up to age 80.

Give yourself the opportunity to live with dignity and not be a burden to your family or a drain on your assets. Long term care insurance provides an important part of your financial strategy, protecting you against what might happen tomorrow.

As brokers, we deal with all of the major carriers offering Long term care coverage. Plan improvements occur every year in this rapidly growing area of comprehensive risk management and financial planning.