Long Term Care Insurance

Long Term Care Insurance


The Old Age Myth


When you think about Long Term Care insurance, do you think of it as an insurance

product for the elderly? We’ve all heard of Long Term Care facilities, so why wouldn’t

Long Term Care insurance be associated with old age?

Long Term Care insurance will pay a weekly tax-free benefit if you are no longer able to

care for yourself due to a chronic illness, cognitive impairment, disability or any other

age-related condition that would prevent you from performing any 2 of the 6 activities of

daily living. The weekly benefit can be used to cover the cost of a nursing home or to

cover the cost of bringing caregivers into your own home.

The 6 Activities of Daily Living are:

– Bathing

– Clothing

– Dressing

– Eating

– Maintaining Continence

– Transferring

Although Long Term Care insurance is commonly associated with the elderly, and

specifically the cost of care at a nursing home or the cost of home care, there are a few

reasons why you may want to consider LTC insurance now.

First and foremost, insurance gets more expensive the older you get. Therefore, the

younger you are when you apply for the insurance, the less expensive it will be. Long

Term Care insurance can be paid for completely in 20 years if you so choose. In this case,

the insurance will protect you for life, but you will have paid for your lifetime of

coverage in 20 years.

Secondly, Long Term Care insurance can be used as an alternative to Disability

insurance. Disability insurance is a popular way of ensuring you, your family and your

financial plan are not damaged by an injury or illness. If you can’t work, you may not be

able to pay your mortgage or support your family. Even of you can pay for your

mortgage, you may not be able contribute to your RRSP, TFSA or savings. At some

level, your financial situation will likely be negatively affected by your inability to earn

an income.

So consider this… Disability insurance will cover a portion of your income (approx 67%

of it) if you cannot perform the duties of your job, a similar job or any job (depending on

which type of coverage that you choose). If you can’t work, a portion of your income will

be paid to you as a monthly benefit. This will help cover some of your expenses, but what

if you need additional care because of your disability?

If you have been disabled and cannot work, there is a good chance that you will not be

able to perform 2 of the 6 activities of daily living. Long Term Care insurance will pay

you a tax-free weekly benefit of your choice (from $150/week up to $2,000/week)

regardless of your income. Whether you can work or not is no longer the issue.

If you want to learn more about what Long Term Care insurance can do you for you and

your financial plan, you can contact us.


* Insurance products are provided through Dundee Insurance Agency Ltd