When I needed life and disability insurance, Jack Bendahan of LSM Insurance was surely the right individual to represent me. (1 of 81)
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.
- 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.
- 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.
- 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.
- 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.
- 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
Why Have Long-Term Care Sales in Canada Stalled?
02/03/2013Those in their 70s may have a hard time qualifying for or affording long-term care insurance. Photo by Ian MacKenzie As reported in the mid-January 2013 issue of the Insurance and Investment Journal, sales of Long-Term Care Insurance in … Continue reading
In a Fight With an Insurance Company: What Are Your Options?
11/27/2012Usually mediation comes before a trial in these matters. Photo by bloomsberries When you're in a dispute with an insurance company, what you do first should depend entirely on the type of claim you have. This could be a personal … Continue reading
Comparing the Four Types of Living Benefits Insurance
09/12/2012Living benefits are health-related insurance plans. Living benefit insurance is very different from life insurance because it pays out if the insured develops a type of injury or illness. Living benefit insurance policies generally come in four distinct types: Disability … Continue reading
Titan of Social Justice Could’ve Been Helped by Long-term Care Insurance
10/30/2011NDP crusader Dan Heap protests in 1984. Photo by Anne Levenston/Toronto Star. Dan Heap is now a shadow of his former self. According to the Toronto Star, the man who once advocated for refugee and workers' rights is now ailing … Continue reading
Manulife Financial’s Disability Insurance to Long-Term Care Conversion Feature
12/10/2010Turn Disability to Long-Term Care with Manulife's Conversion Feature. Photo by Michael Carian Manulife Financial offers non-medical conversion from its Disability Insurance policies to its Long-Term Care Insurance program. The following is an example of how the program works: A … Continue reading
Long-Term Care Insurance: An Under-Served Market
01/23/2010Are advisors missing an opportunity with Long-term Care insurance? Photo by Edwin Kelly Tofslie Recent statistics compiled by the Life Insurance Marketing Research Association [LIMRA], and published in the January 2010 issue of the Insurance Journal, have shown that there … Continue reading
Five Long-Term Care Insurance Myths
12/19/2009Man by Michelle Tribe While the number of long-term care policies being sold in Canada is rising, the number of Canadians who are properly insured is still extremely low. In some instances, its due to misunderstanding and myth. The following … Continue reading
Long-term Care Consumer Report
12/02/2009
Growing 2 old has never
been easier with Long
term care insurance.
photo by Edwin Kelly TofslieWe're always surveying the latest and greatest in insurance plans available in Canada and today we're breaking down the advantages and disadvantages of some of leading long-term care plans in Canada. We do the work, so you don't have to.
In 2008, LIMRA, a financial research firm, introduced stats that underscore the importance of getting long-term care insurance early. These include the following:
Continue readingLong-term Care Insurance: Why You Should Buy Now
11/30/2009
Thinking about Long-term
Care? Don’t wait any
longer, buy now.
photo by Doug ShefferLong-term care insurance was first sold in the U.S. in 1987, with Canada following in the early 90s, and there's still a limited number of Canadians with long-term care policies. That's why we have seven reasons why you should consider buying long-term care insurance now.
Continue readingLong-Term Care Insurance: The Top 5 Reasons People Claim Benefits
11/30/2009Alzheimers disease is the top reason people claim long term care benefits. photo by Michael Carian People claim Long-term Care benefits for a variety of reasons, but Life Plans has released the definitive top five reasons the average claimant (about … Continue reading
LIMRA’s Long-term Care Statistics
11/29/2009LIMRA's long-term Care statistics for 2008 shows that, while the number of long-term care policies being sold in the United States is rising, the number of Americans who are properly insured is still extremely low. The data they reveal include … Continue reading
Sun Life’s Long-term Care Plan
11/20/2009Many Canadian insurance companies carry a Long-term Care plan, but we know how hard it can be to tell the differences between them all. That's why we've taken the liberty of breaking down three Long-term Care plans from three of Canada's leading insurance providers. First in this series is Sun Life Financial:
Pros
- Rolling five year guarantee (guaranteed to remain the same for five years).
- Zero elimination period available for facility care.
- No waiting period if there's a relapse of illness within 180 days of recovery.
- Payment for the longer of 20 years or until the age of 55 is available.
Cons
- Comprehensive benefit has to be purchased for home care services.
- The client must submit receipts to claim benefits.
Manulife Living Care Underwriting Made Easy
10/28/2009The following is a snapshot of Manulife's underwriting requirements on their Long-term Care plan called Living Care. They do have the right to alter those requirements depending on the insured's health history. Age 70 Living Care application Telephone interview Age … Continue reading
Manulife’s Long-term Care Plan LivingCare
10/22/2009Photo by Benson Kua 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. Additionally, rather than having a set weekly or monthly benefit, … Continue reading
Random Facts About Long-term Care Insurance Everyone Needs to Know
10/21/2009Before you buy Long-term Care, there are some things you should know. image courtesy Ian Mackenzie There are certain things all potential applicants should know before buying Long-term Care Insurance. It's our hope that the following facts will arm you … Continue reading
Penncorp Life: One Step Long-term Care
10/10/2009Penncorp Life Insurance specializes in disability insurance for self-employed individuals and small business owners. On Nov. 14, 2008, the company announced the launch of their Long-term Care plan, called One Step Long-Term Care. Other Long-Term Care plans in the Canadian … Continue reading
CARP’s Long-term Care Insurance Plan
09/28/2009CARP offers Long-term Care insurance for its members. The Canadian Association for the Fifty-Plus (CARP), formerly known as the Canadian Association of Retired Persons, offers a Long-term Care insurance program to its members that is underwritten by Desjardins. The program … Continue reading
Long-Term Care Insurance Underwriting
09/21/2009Applying for Long-Term Care? Know what the underwriters are looking for. The underwriting criteria for Long-term Care insurance can be significantly different than for life insurance. Life insurance looks at mortality risks such as heart disease, build or lifestyle, but … Continue reading
A Closer Look: Long-Term Care Insurance
09/18/2009Manulife's 'Shared Coverage Option' is just one way you and your spouse can live out your twilight years. Nearly half of all Canadians over the age of 65 will need some sort of long-term care. While the government will cover … Continue reading
Long Term Care Insurance – Home Care vs. Facility Care
04/18/2009by 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 … Continue reading
Posted by Chantal Marr.
Chantal Marr is a member of the Independent Financial Brokers of Canada.
Much of her success stems from her ability to listen to her clients' needs.
Read Chantal's background.
3 Comments
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Thanks Judith. Long Term Care Insurance provides income usually in the form of a weekly income in the insured requires assistance with generally 2 of 6 functions of daily living. Some companies allow the insured to use the money however they wish, some require receipts and reimburse. The only real downside is the cost. Plans can be tailored to meet different budgets.
Direct line: 416.273.7811, 905.248.4849 Email:
[...] Long-term care insurance is used to help the insured cover the cost of care when they are no longer able to care for themselves and become functionally dependent. The cost of care can be significant. We’ve put together a table with typical home services and their costs in Ontario. In our latest insurance tips article you can also read Lorne’s comments on costs of long-term care. [...]
I’m 60 year old female in good spirits. I recently moved to canada from the US to help my son and daughter-in-law with their growing family. I am a permanent resident here and covered by OHIP. However, as public healthcare is a relatively foreign concept to me, I’m not sure what sorts of coverage I should consider if at all. Im not in any hurry but like having my ducks in a row, as you can imagine. My question is re: long term care coverage? Can you explain pros and cons, with OHIP coverage in mind? Does it benefit me at all? Many thanks, J