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

long term care
Illustration by Sarah May Scott

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. Below is a listing of the average cost of care in Ontario:

 

Home ServiceCost
  
Meal delivery (per meal)$5.18
In-home meal preparation$20.77
Laundry/House cleaning$19.93
Personal Care (Bathing/Dressing)$21.13
Companionship/Supervision$20.47
Skilled Nursing$29.45 to $69.00
Occupational Therapy$98.31

 Source: Best in Care

 

Lorne’s Comments

 

The cost of care in Ontario is has risen dramatically in recent years. Long-term care insurance takes the risk out of planning for care. You receive tax free money when you need it most to the cover many of the above costs. Best of all, many of these policies can be paid up in a limited number of years or offer a return of premium feature in event the insured dies and a claim is not made.

 

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Seth Chandler
Seth Chandler

What happens under Canadian long term care policies if the long term care insurer needs to raise premiums? Is there any regulatory or contractual limit on its ability to do so?

Is it possible to purchase protection against forfeiture of a Canadian LTCI policy so that if I can’t afford the premiums any more I get either cash back (because I overpaid in the beginning of the policy) or some sort of limited protection (lower benefits, shorter time period)?

Rudy
Rudy

Hi Lorne,
if you have a LTC policy with a company in Canada and God Forbid the company is going into receivership or bankrupt What happen to my LTC Policy? Will someone take it over ? Or is there some sort of Government intervention like the Pension Guaranteed Fund in Ontario? I hope this never happen but this is a pure hypothetical question.
Thanks

Mara
Mara

Hello:

I am wondering if there is any major benefit to purchasing Long-Term Care insr. if one already has Long-Term Disability Ins.? Are they the same product? Or, are there key differences?

Thx,
Mara

Raymond Lee
Raymond Lee

Assuming premium affordability is not an issue for Long Term Insurance (LTI);

Q1. Any need to buy LTI that pay benefit for LIFE ?
Q2. If no, what is the minimum number of years for benefit payout ? note; Heard MOST claims do NOT last more than 6 years, correct ?

Q3. Which type of premuim payment is better ; Limited 20 years or Ongoing payment for Life ?

Thank you,
Raymond

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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. […]