LONG TERM CARE INSURANCE QUOTES AND EXPERT TIPS

Assumption Life
BMO Life Assurance Company
Canada Life Insurance Company of Canada
Canada Protection Plan
Desjardins Financial Security Life Insurance
Empire Life Insurance Company
Equitable Life Insurance
Foresters Canada
Industrial Alliance Financial Group
Ivari
La Capitale Life Insurance
RBC Insurance
Specialty Life Insurance (SLI)
SSQ Life Insurance Company Inc. (Formerly AXA Life Insurance Inc.)
UV Insurance
Wawanesa Life Insurance Company

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    Why Choose LSM Insurance for Long Term Care Insurance?

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    A truly an independent agency working for you. 15+ languages spoken.
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    Licensed across Canada and working with over 100 experienced insurance brokers.
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    Working with more 20 + insurers to find for you the best life and living benefits products.
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    Proudly serving Canadians for over 25 years. Helped thousands Canadians.

    How Much Does Long Term Care Insurance Cost?

    Male, 45 years old, weekly benefits of $500 (monthly benefits of $2,167), no inflation option
    Best quote
    Standard
    $76.10 / month
    Female, 45 years old, weekly benefits of $750 (monthly benefits of $3,250), no inflation option
    Best quote
    Standard
    $107.41 / month
    Male, 45 years old, weekly benefits of $1,000 (monthly benefits of $4,333), no inflation option
    Best quote
    Standard
    $138.71 / month

    What is Long Term Care Insurance?

    Long term care insurance is a special type of insurance designed to cover the costs of providing basic care in the event that you are not able to care for yourself and not able to perform two or more of the activities of daily living e.g. bathing, eating, dressing, toileting, porting/transporting, etc.

    Then once you qualify by being unable to do any two or more of the activities of daily living, an insurance company will pay the monthly benefit which may be based on the original subscription if the inflation option is not taken or higher if it is.

    Who Needs Long Term Care Insurance?

    It is almost certain that at some stage in our lives, many of us will require basic care to be able to live with dignity. Thus, theoretically, each of us should have some kind of long-term care reserve. An alternative to long-term care insurance might be a solid pool of your own savings. It is important to remember, though, that once you need long-term care, your savings will start depleting quickly.

    Here is a breakdown of how annual costs for long term care vary across provinces. If you are not sure that you will have these funds in your latter years, you should consider your long-term care options.

    Long term care in AB: $19,000 – $23,000 / year
    Long term care in BC: $12,000 – $38,000 / year
    Long term care in MB: $13,000 – $30,000 / year
    Long term care in NB: ~$41,000 / year
    Long term care in NF: ~$34,000 / year
    Long term care in NS: ~$41,000  / year
    Long term care in ON: $20,000 – $30,000  / year
    Long term care in PEI: $14,000 – $22,000 / year
    Long term care in QC: $13,000 – $24,000 / year
    Long term care in SK: $13,000 – $24,000  / year

    It is worth mentioning that even young people might need long term care at some stage (e.g. if they are not able to care for themselves after an accident/injury).

    Interested in Long Term Care Insurance or have questions?

    How Does Long Term Care Insurance Work?

    Here’s how long term care insurance works: if you have a long term care policy in place and suddenly require  care (e.g. after an accident), an insurance company will determine if the conditions for long term care benefits have been met. In many cases, this means that you are not able to perform at least two activities on the list of basic tasks (known as the acts of daily living, such as eating, dressing, bathing, etc.). If this is the case, an elimination period will pass (often it is 30-90 days after becoming disabled), and only then will an insurer start paying regular benefits.

    These benefits will be paid either until you are well again, or through the duration of a pre-determined period of time, as defined in your policy (e.g. two years).

    Typically, there are no receipts required, i.e. once a claim is approved, an insurance company pays the money, no questions asked, plus given the benefit is tax free, there currently is not tax receipt issued, so this benefit does not affect other benefits you may be entitled to.

    It is important to know that there might be different inflation options when it comes to the inflation topic e.g.:

    • Option 1: You take no inflation option and your benefits stay the same.
    • Option 2: Weekly benefit increases by 3% on each policy anniversary while the weekly benefit is payable.
    • Option 3: Weekly benefit increases by 2% on each policy anniversary if the weekly benefit is not payable, and it increases by 3% on each policy anniversary while the weekly benefit is payable.

    Mistakes to Avoid When Shopping for Long Term Care Insurance

    1. Not knowing benefit limitations: It is important to know if your policy has limitations on when and how you receive your benefits. Many LTC policies will pay out only if you require facility care assistance.
    2. Forgetting to consider the elimination period: The elimination period refers to the amount of time which must pass before you will begin to receive your weekly benefit, and the benefit period refers to how long you’ll receive that coverage. Those two variables, combined with your daily benefit, will help determine your monthly premium. During the elimination period, you are not receiving any benefits and need to make sure that you have enough savings. Determine the elimination period and/or the benefit period that best suit your needs and budget.
    3. Not giving consideration to the premium cap: Determine if there’s a premium cap on the policy. Most long term care policies in Canada offer guaranteed premiums for only the first five policy years.
    4. Forgetting to look at additional riders: 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. Missing out on the benefits of working with an insurance broker vs with an insurer directly: Be sure to work with a trusted independent broker who can provide you with unbiased independent advice when purchasing a long term care policy. A broker can get you quotes from dozens of companies and will compare them, whereas an insurer is only interested in selling its own policies.

    When to Purchase Long Term Care Insurance

    In general, the earlier you purchase long term care insurance, the lower your premiums will be. Thus, it is advisable to lock in good premiums while you are young.

    Interested in Long Term Care Insurance or have questions?

    What companies offer long-term care insurance today?

    In the past, a number of Canadian life insurers offered long-term care (LTC) insurance. Today, there are only a few offerings on the market available to Canadians as dedicated LTC plans, and a few insurers have LTC coverage as a conversion option on their other policies (such as disability insurance and critical illness insurance).

    Our overview lists the Canadian insurers who offer LTC insurance now or in the past.

    CompanyIn the pastAs of May 2021
    YesYes
    YesAs a conversion option on critical illness insurance plans
    YesYes
    (My Dignity Product for home-based care)
    RBC-InsuranceYesAs a conversion option on disability insurance and critical illness insurance plans
    YesNo
    YesNo (LTC insurance is in the process of being closed)

    Reasons why you should consider buying long-term care insurance now

    1. Aging population: According to Statistics Canada, one in every seven Canadians is 65 and over.

    2. Cost of care increasing in Canada: The Canadian government already spends $3.9 billion on Alzheimer’s and dementia.

    3. Many long-term care policies have optional home care service: This is especially important when the average cost of a private room in a nursing home can reach $50,000 per year and even more.

    4. Freedom of choice: The choice of home care or nursing home care gives the insured independence and control to be cared in a way he or she chooses.

    5. Caring for your family: This control prevents the insured from being a burden on his or her family.

    6. Cost increase with age: The cost of long-term care coverage increases as people age and the likelihood of qualifying for coverage decreases.

    7. Taxes, taxes, taxes: The weekly or monthly long-term care benefit received is tax-free.

    Interested in Long Term Care Insurance or have questions?

    Long-Term Care Myths

    “My Family Will Take Care of Me”
    This would have been more likely years ago, when adult children tended to live closer to their parents and women stayed at home. In today’s society, children may live across the country or, further still, across continents. Obviously, many women are now active in the workforce, with less time to fulfill the traditional caregiver role. Even if this is a feasible solution, many seniors prefer to have control over their care and don’t want to burden their families.

    “Provincial Health Care Plans Will Cover My Bills”
    Provincial health have experienced major cutbacks in recent years. Worse, the trend seems to be on rise.

    “Long-term Care Insurance is too expensive”
    Long-term Care Insurance premiums are lower, when younger you are. So, it makes sense to purchase coverage when you are younger and when premiums are more affordable. The monthly premium if you purchase coverage at age 45 can be as low as $50 a month. Whereas, the same plan for a 55-year-old would be over a $100 a month and for a 65-year-old would be over $200 a month.

    “Long-term Care Is to Hard to Qualify For”
    Underwriting requirements for long-term Care Insurance are very different from life or Disability Insurance. In most instances, coverage can be obtained without having to complete medical tests.

    “I’m Too Young”
    A lot of us think that only senior citizens need to worry about Long-term Care, so we put off preparing for the possibility. The fact is accidents or illnesses can strike at any age.

    People of all ages can develop serious conditions that require them to need assistance with routine daily activities for an extended period of time and the cost of care can be significant. Long-term Care Insurance can help cover the cost of the care associated with these illnesses and injuries while protecting your assets.

    Interested in Long Term Care Insurance or have questions?

    The Top 5 Reasons People Claim Long-Term Care Insurance Benefits

    People claim Long-term Care benefits for a variety of reasons, – here are the top five reasons that long-term care policy holders go on claim are:

    1. Alzheimer’s disease or related dementia
    2. Stroke
    3. Injury
    4. Cancer
    5. Other

    Interested in Long Term Care Insurance or have questions?

    Long Term Care Insurance – 5 Essential Tips

    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.
    Interested in Long Term Care Insurance or have questions?

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