Lorne Marr from LSM Insurance shares his experience:
“Long-Term Care Insurance is a bit of a unique product. It has been offered in Canada for a number of years but in recent years a lot of the main players in the market have dropped out: Manulife, Sun Life, RBC (Insurance) were all very strong players in Long-Term Care Insurance market and now there is a lot less options available to consumers but there are still some good plans available.
MyDignity offers an excellent plan that can be a great fit for people in their fifties or sixties – it can provide anywhere from $100,000 to $150,000 dollars of coverage. They can cover the costs associated with somebody not being able to do two of the six functions of daily living it can allow them to maintain their dignity so they can stay in their home, they can cover all the costs and be less of a burden for the family and allow them to focus on living a good quality or better quality of life.”
Long term care insurance (sometimes also mistakenly called long term health 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.
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).
Here’s how long term care insurance (or long term health 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.:
Below is an overview of insurance companies offering long-term care coverage in Canada, including dedicated policies and available coverage options.
| Plan / provider | Type of coverage | Main features | Important limitation |
|---|---|---|---|
 Sun Life — Sun Retirement Health Assist | Standalone LTC insurance | Weekly income-style benefit; care at home, retirement residence or long-term care facility | Eligibility and benefit conditions apply |
 RBC Insurance — Long Term Care Conversion Option | Conversion of eligible existing insurance | Certain critical illness or disability policyholders may convert to LTC coverage | Not generally available as a new, standalone policy |
 MyDignity — through Ratehub.ca | Home-care assistance insurance | Advertised coverage options from $50,000 to $125,000; support for eligible home-care expenses | Focuses on care at home, not comprehensive facility coverage |
| Provincial government programs | Publicly funded care and services | Eligible home care and subsidized long-term care | Availability, eligibility, waiting lists and resident charges vary by province |
The following table compares key features of selected long-term care insurance options in Canada, including eligibility, medical underwriting, benefit amounts, and covered care settings. Since coverage structures and conditions vary, review the policy terms carefully to understand what each option provides.
| Feature | Sun Life | RBC conversion option | MyDignity home-care plan |
|---|---|---|---|
| New applicants | Yes, subject to eligibility | Only eligible existing policyholders | Advertised for ages 18–80 |
| Medical underwriting | Confirm with insurer | Conversion may avoid new medical evidence if conditions are met | Advertised as no medical exam |
| Benefit structure | Weekly income-style payments | Depends on conversion terms | Selected coverage amount and eligible expenses |
| Maximum advertised benefit | Up to $2,300/week | Confirm with RBC | $125,000 in advertised coverage |
| Care at home | Yes | Check contract | Yes |
| Retirement or LTC facility | Yes | Check contract | Not equivalent to comprehensive facility LTC coverage |
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.
Long-term care insurance is optional, and whether it makes sense depends on your financial situation. Please see several sample scenarios below.
| Your situation | Is insurance worth considering? |
|---|---|
| You have substantial savings and investments | Possibly, to protect your assets |
| You rely mainly on CPP, OAS and limited retirement income | Consider carefully; premiums may be difficult to afford |
| You have children but don’t want them to become your caregivers | Potentially useful |
| You have a spouse who depends on your retirement income | Worth evaluating to protect your spouse financially |
| You can comfortably pay for future care and accept the financial risk | You may not need |
“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.
Canada’s public healthcare system covers medically necessary hospital and physician services, but home care and long-term care benefits vary by province and territory. Some care costs may still come out of your own pocket.
There are several factors to investigate when determining which long term care policy is right for you.
