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
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Why Have Long-Term Care Sales in Canada Stalled?
02/03/2013As 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.
In a Fight With an Insurance Company: What Are Your Options?
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Comparing the Four Types of Living Benefits Insurance
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Manulife Financial’s Disability Insurance to Long-Term Care Conversion Feature
12/10/2010Manulife Financial offers non-medical conversion from its Disability Insurance policies to its Long-Term Care Insurance program.
Long-Term Care Insurance: An Under-Served Market
01/23/2010The average advisor sells less than one long-term care insurance policy per year.
Five Long-Term Care Insurance Myths
12/19/2009The following are 5 myths surrounding Long Term Care Insurance.
Long-term Care Consumer Report
12/02/2009we're breaking down the advantages and disadvantages of some of leading long-term care plans in Canada. Continue reading
Long-term Care Insurance: Why You Should Buy Now
11/30/2009We 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
11/30/2009the definitive top five reasons the average claimant files a long-term care claim.
LIMRA’s Long-term Care Statistics
11/29/2009LIMRA's long-term Care statistics for 2008
Sun Life’s Long-term Care Plan
11/20/2009Long-term Care plans from three of Canada's leading insurance providers. First in this series is Sun Life Financial. Continue reading
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.
Manulife’s Long-term Care Plan LivingCare
10/22/2009Manulife'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
10/21/2009the 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
10/10/2009Penncorp launched their Long-term Care plan, called One Step Long-term Care.
CARP’s Long-term Care Insurance Plan
09/28/2009The Canadian Association for the Fifty-Plus (CARP) offers a Long-term Care insurance program.
Long-Term Care Insurance Underwriting
09/21/2009The underwriting criteria for Long-term Care insurance can be significantly different than for life insurance.
A Closer Look: Long-Term Care Insurance
09/18/2009Long-term care insurance provides coverage when you need it most.
Long Term Care Insurance – Home Care vs. Facility Care
04/18/2009Most 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, or transferring.
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[…] 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
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.