LONG TERM CARE INSURANCE QUOTES AND EXPERT TIPS

Why Choose LSM Insurance for Long Term Care Insurance

  • We work with experienced and reputable independent brokers across Canada
  • LSM Insurance is one of the most respected life insurance brokerages in Canada
  • We work with more life insurance companies than the majority of brokers (15+ insurers)
  • We have been serving Canadians for over 25 years

 

LSM Insurance is accredited by:

 

 

 

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How Much Does Long Term Care Insurance Cost?

Male, 45 years old, weekly benefits of $500 (monthly benefits of $2,167), no inflation option

Best quote:
$76.10/month

Female, 45 years old, weekly benefits of $750 (monthly benefits of $3,250), no inflation option

Best quote:
$107.41/month

Male, 45 years old, weekly benefits of $1,000 (monthly benefits of $4,333), no inflation option

Best quote:
$138.71/month

What is Long Term Care Insurance?

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.

Interested in Long Term Care Insurance or have questions? Please complete the form above

Who Needs Long Term Care Insurance?

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).

Interested in Long Term Care Insurance or have questions? Please complete the form above

How Does Long Term Care Insurance Work?

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.:

  • Option 1: You take no inflation option and your benefits stay the same.
  • Option 2: Weekly benefit increases by 3% on each policy anniversary while the weekly benefit is payable.
  • Option 3: Weekly benefit increases by 2% on each policy anniversary if the weekly benefit is not payable, and it increases by 3% on each policy anniversary while the weekly benefit is payable.

Interested in Long Term Care Insurance or have questions? Please complete the form above

Mistakes to Avoid When Shopping for Long Term Care Insurance

  1. Not knowing benefit limitations: It is important to know if your policy has limitations on when and how you receive your benefits. Many LTC policies will pay out only if you require facility care assistance.
  2. Forgetting to consider the elimination period: The elimination period refers to the amount of time which must pass before you will begin to receive your weekly benefit, and the benefit period refers to how long you’ll receive that coverage. Those two variables, combined with your daily benefit, will help determine your monthly premium. During the elimination period, you are not receiving any benefits and need to make sure that you have enough savings. Determine the elimination period and/or the benefit period that best suit your needs and budget.
  3. Not giving consideration to the premium cap: Determine if there’s a premium cap on the policy. Most long term care policies in Canada offer guaranteed premiums for only the first five policy years.
  4. Forgetting to look at additional riders: 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. Missing out on the benefits of working with an insurance broker vs with an insurer directly: Be sure to work with a trusted independent broker who can provide you with unbiased independent advice when purchasing a long term care policy. A broker can get you quotes from dozens of companies and will compare them, whereas an insurer is only interested in selling its own policies.

When to Purchase Long Term Care Insurance

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.

Interested in Long Term Care Insurance or have questions? Please complete the form above

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Judith
Judith

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… Read more »

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Cost of Care in Ontario and the need for Long Term Care Insurance

[…] 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. […]