Penncorp Life: One Step Long-term Care

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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.

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