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 with the valuable information you need to make the right decision for you and your family:
The first individual Long-term Care policies were sold in the U.S. in the early 80s, according to the U.S. Dept. of Labor, with Canada following suit in the early 90s.
Only a handful of insurance companies offer Long-term Care Insurance in Canada and the plan features are not standardized. Therefore, it’s a difficult product for brokers to deal with and not many do. Your best bet is to work with a broker who specializes in Long-term Care insurance.
Long-term Care plans generally offer a daily or weekly benefit when the insured can no longer perform two or more of the following six basic activities of daily living: Bathing, Dressing, Toileting, Transferring, continence and eating, or is diagnosed with a cognitive impairment, such as Alzheimer’s Disease. Penncorp is the only company in Canada that only requires the insured to no longer perform one of the basic living activities.
Most Long-term Care policies in Canada have a five-year premium guarantee, after which time premiums can be adjusted on a class-wide basis. RBC Insurance is one of the companies to have a maximum premium after the fifth year.
Long-term Care plans usually pay on a receipt basis, i.e. they reimburse the insured for expenses incurred while requiring assistance. Desjardins is unique, in that it allows the insured to spend the proceeds however they wish. This can be of value if the insured wants a family member or someone other than a qualified healthcare professional looking after them.
Unlike life insurance, most Long-term Care plans do not offer a discount to non-smokers, i.e. they price smokers and non-smokers at the same rate. Some carriers even price males and females at the same rate. The latter provides a good value for males, but a poor value for females. Given the average female lives longer and is more likely to be on claim for a longer period of time than a male.
You can get more details on Long-term Care Insurance, as well as a quote, by visiting our free, online Long-term Care Instant Quote Page, or by calling our office at 1-866-899-4849.
