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

• How Much Does Assisted Living Cost?

  08/13/2015

  Assisted living has become increasingly popular with seniors who want to maintain an independent lifestyle while getting some help with daily life activities and reassurance that help is available round the clock, if required.

• Insurance Horror Stories: Bill Mantlo, Co-creator of Rocket Raccoon in ‘Guardians of the Galaxy’

  08/01/2014

  If you've already seen Marvel's latest summer blockbuster, Guardians of the Galaxy, or even if you've just watched the trailer, one thing becomes immediately clear: the scene stealer for the entire movie is an anthropomorphic, trigger-happy raccoon voiced by Bradley Cooper.

• Universal life and Long-Term Care Combination Plan

  10/05/2013

  Desjardins Financial recently made available a long-term care advance on its universal life foundation policies.  Canada.com reports that Canada’s rapidly aging population has led to a 38% increase of seniors living in nursing homes or other collective care facilities over … Continue reading →

• Would You Sell Your Life Insurance Policy to a Third Party?

  07/15/2013

  Selling your life insurance benefit for cash upfront to a third party is illegal in most provinces in Canada — except Quebec, Saskatchewan, Nova Scotia, and New Brunswick.

• Why Have Long-Term Care Sales in Canada Stalled?

  02/03/2013

  As reported in the mid-January 2013 issue of the Insurance and Investment Journal, sales of Long-Term Care Insurance in Canada continue to stagnate, and recent events have not helped matters. RBC Insurance withdrew its long-term care products from the market, … Continue reading →

• In a Fight With an Insurance Company: What Are Your Options?

  11/27/2012

  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 injury claim, a contractual claim, a long-term disability claim, or a property … Continue reading →

• Comparing the Four Types of Living Benefits Insurance

  09/12/2012

  Living benefit insurance is very different from life insurance because it pays out if the insured develops a type of injury or illness.

• Titan of Social Justice Could’ve Been Helped by Long-term Care Insurance

  10/30/2011

  Dan Heap is now a shadow of his former self.

• Manulife Financial’s Disability Insurance to Long-Term Care Conversion Feature

  12/10/2010

  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 Manulife client who has a $2,000 monthly indemnity disability plan would be able … Continue reading →

• Long-Term Care Insurance: An Under-Served Market

  01/23/2010

  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 were only 7,847 long-term care policies sold in 2008 – marking a decline compared … Continue reading →

• Five Long-Term Care Insurance Myths

  12/19/2009

  
  Man 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 are five myths surrounding Long Term Care Insurance:

  "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. The last federal budget was focused on tax cuts, not health care, forcing provinces like BC to cut over 6,000 surgeries. 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.

  
  If you have any questions please do hesitate to call us at 1.866.899.4849 ,or visit our Long-term Care Quote Page.

• Long-term Care Consumer Report

  12/02/2009

  
  Growing 2 old has never
  been easier with Long
  term care insurance.
  photo by Edwin Kelly Tofslie

  We'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 reading →

• Long-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 Sheffer

  Long-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 reading →

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

  11/30/2009

  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 61.6-years-old) files a claim. The top five reasons that long-term care policy holders go on claim … Continue reading →

• LIMRA’s Long-term Care Statistics

  11/29/2009

  LIMRA'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 the following:

• Sun Life’s Long-term Care Plan

  11/20/2009

  Many 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.
  Continue reading →

• 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. They do have the right to alter those requirements depending on the insured's health history.

  Age 70

  • Living Care application

  • Telephone interview

  Age 71 or older

  • Living Care application

  • Face-to-face interview

  • The insured's doctor will also be contacted to verify additional medical information.

  As a rule of thumb, Manulife does not require lab tests as part of their long-term care application process.

  You can get additional information on Manulife's Long-term Care plans, along with other long-term care providers by contacting us at 1-866-899-4849.

• 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. Additionally, rather than having a set weekly or monthly benefit, Manulife allows the insured to … Continue reading →

• Random Facts About Long-term Care Insurance Everyone Needs to Know

  10/21/2009

  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: … Continue reading →

• Penncorp Life: One Step Long-term Care

  10/10/2009

  

  Penncorp 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 marketplace require that the insured is unable to perform at least two basic activities of daily living. (washing, dressing, feeding, transferring, toileting and continence) With the One Step Long-term Care Plan only one incapacity, including cognitive impairment, allows the insured to take advantage of the best possible coverage. Given the aging population and a public health system increasingly under pressure, Canadians are becoming increasingly concerned about the issue of Long-term Care. 40% of those who are already receiving Long-term Care are not yet age 65 and after age 65, close to 50% of all Canadians will need this type of care.

  Features of the Penncorp Plan include:

  • The plan can be issued to applicants aged 30 to 70.

  • Benefit amounts can range from a minimum of $20.00/day to a maximum of $50.00/day.

  • Benefit periods are 80% of th maximum benefit for the first 720 days. At the end of the 720 day period the insured receives 100% of the daily maximum benefit for an additional 1,080 days (for a total of 1,800 days) after confinement begins.

  Advantages of the policy include the following:

  • As emphasizd above, the insured can qualify for the benefit if s/he requires assistance for only one of the six basic functions for daily living.

  • There are no policy fees associated with the plan.

  Disadvantages of the policy include the policy:

  • The maximum daily benefit for the plan of $50.00 a day, or $1500/month is quite low when compared against other plans on the market. By comparison, RBC Insurance, the leading Long-term Care provider in Canada offers maximum benefits as high as $300/day ($9,000/month).

  • There's also no premium guarantee on the policy premium. Most companies offer a premium guarantee for at least the first five policy years.

  The following is a quote for a 60-year-old female non-smoker
  

  Benefit amount: $50.00/day or $1,500/month

  Elimination Period: No days for facility care and 90 for home care

  Benefit Period: 80% for the first 720 days and 100% for the next 1080 days

  Annual Premium: $1,089.15

  You can get more details on Long-term Care insurance by contacting our office at 1-866-899-4849, or visit our free, Long-term Care Instant Quote Page.

• CARP’s Long-term Care Insurance Plan

  09/28/2009

  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 offers essentially the same features and pricing as … Continue reading →

• Long-Term Care Insurance Underwriting

  09/21/2009

  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 Long-term Care looks at mobility and cognitive issues. These factors can … Continue reading →

• A Closer Look: Long-Term Care Insurance

  09/18/2009

  Nearly half of all Canadians over the age of 65 will need some sort of long-term care. While the government will cover some of these costs, there are limits not only to how much they will cover, but also the … Continue reading →

• Long Term Care Insurance – Home Care vs. Facility Care

  04/18/2009

  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 … 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.