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.

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    • Five Long-Term Care Insurance Myths


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      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.

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      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:

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    • LIMRA’s Long-term Care Statistics


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      • 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.


      • Comprehensive benefit has to be purchased for home care services.
      • The client must submit receipts to claim benefits.
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    • Manulife Living Care Underwriting Made Easy


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      Age 70

      • Living Care application

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      • 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.

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    • Penncorp Life: One Step Long-term Care


      penncorp logo

      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


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    When our children graduated, we wanted to cut back on and optimize our insurance. Jack Bendahan helped us part with our unresponsive agents and found us the best new deal! (1 of 85)


    1. Cost of Care in Ontario and the need for Long Term Care Insurance 07/30/2008 at 8:24 am

      […] 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. […]

    2. Judith 05/06/2013 at 7:11 pm

      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

    3. LSM Insurance 05/07/2013 at 7:29 am

      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.

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