Thank you Andrew for helping me, you explained to me how to find the right coverage at a price that I can afford for my family. He was slow and helped me understand what I needed!
Thank you so much and God Bless You.
Male, 45 years old, weekly benefits of $500 (monthly benefits of $2,167), no inflation option
Female, 45 years old, weekly benefits of $750 (monthly benefits of $3,250), no inflation option
Male, 45 years old, weekly benefits of $1,000 (monthly benefits of $4,333), no inflation option
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.
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 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.:
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.