Long Term Care Insurance

5 essential tips when buying a long term care insurance policy

Long term care insurance provides individuals with a weekly tax free benefit in the event that they would require assistance with 2 of the 6 activities of daily living. Those activities include bathing, dressing, eating, maintaining continence, toileting, and transferring (Check the appropriate policies for more details). The proceeds received from a long term care policy can help prevent individuals from having to deplete their saving and/or forcing their family into debt due to unforeseen or unplanned for medical expenses. There are several factors to investigate when determining which long term care policy is right for you.

1. Does the policy have limitations on when and how you receive your benefits? Many LTC policies will payout only if you require facility care assistance.
2. Determine the elimination period and/or benefit period which best suit your needs and budget. The elimination period refers to the amount of time which must pass before you begin to receive your weekly benefit, and the benefit period refers to how long you'll receive that coverage for. Those 2 variables combined with your daily benefit will help determine your monthly premium.
3. Determine if there's a premium cap on the policy. Most long term care policies in Canada offer guaranteed premiums for only the first 5 policy years.
4. Determine if you need any riders such as cost of living adjustment and/or return a premium rider. The former allows your benefit to increase in line with inflation, whereas the return of premium benefit returns the premium to your beneficiary in the event you pass away.
5. Be sure to work with a trusted independent broker who can provide you with unbiased independent advice when purchasing a long term care policy.

Be sure to also check out our Long-Term Care - Basic Vocabulary and Definitions, as well as our Critical Illness and Disability Insurance Tips section.

Long Term Care News

• Long-Term Care Insurance: An Under-Served Market 01/23/2010

  The average advisor sells less than one long-term care insurance policy per year.

• Five Long-Term Care Insurance Myths 12/19/2009

  The following are 5 myths surrounding Long Term Care Insurance.

• Long-term Care Consumer Report 12/02/2009

  we're breaking down the advantages and disadvantages of some of leading long-term care plans in Canada.

• Long-term Care Insurance: Why You Should Buy Now 11/30/2009

  We have seven reasons why you should consider buying long-term care insurance now.

• Long-Term Care Insurance: The Top 5 Reasons People Claim Benefits 11/30/2009

  the definitive top five reasons the average claimant files a long-term care claim.

• LIMRA's Long-term Care Statistics 11/29/2009

  LIMRA's long-term Care statistics for 2008

• Sun Life's Long-term Care Plan 11/20/2009

  Long-term Care plans from three of Canada's leading insurance providers. First in this series is Sun Life Financial.

• Manulife Living Care Underwriting Made Easy 10/28/2009

  The following is a snapshot of Manulife's underwriting requirements on their Long-term Care plan called Living Care.

• Manulife's Long-term Care Plan LivingCare 10/22/2009

  Manulife's Long-term Care plan, called LivingCare, is unique to the industry in that it is available on a single-life basis or a shared coverage option.

• Random Facts About Long-term Care Insurance Everyone Needs to Know 10/21/2009

  the following facts will arm you with the valuable information you need to make the right decision for you and your family

• Penncorp Life: One Step Long-term Care 10/10/2009

  Penncorp launched their Long-term Care plan, called One Step Long-term Care.

• CARP's Long-term Care Insurance Plan 09/28/2009

  The Canadian Association for the Fifty-Plus (CARP) offers a Long-term Care insurance program.

• Long-Term Care Insurance Underwriting 09/21/2009

  The underwriting criteria for Long-term Care insurance can be significantly different than for life insurance.

• A Closer Look: Long-Term Care Insurance 09/18/2009

  Long-term care insurance provides coverage when you need it most.

• Long Term Care Insurance - Home Care vs. Facility Care 04/18/2009

  by Pablo Prez Most Long Term Care insurance policies in Canada will pay a tax free daily benefit once the insured's physician provides certification that the insured requires care in a facility or at home because of his/hers inability to perform two or more specified activities of daily living — bathing, dressing, eating, maintaining continence, toileting, [...]