Life expectancies have have been increasing dramatically in the last 20 years. While this has resulted in reduced cost for term life insurance, the opposite has occurred when it comes to the cost of long term care. Should you be fortunate enough to be the beneficiary of this longevity the questions you should be asking yourself are "How will I pay for this?" and "Will I be able to keep some level of independence financially and otherwise?".
What are the Chances of Needing Long Term Care and what are the Costs?
As the age of 65 is attained, the likelihood of needing some form of long-term care support reaches 43 % (1).
A study commissioned by the Alzheimer Society of Canada entitled Rising Tide:The Impact of Dementia on Canadian Society states that the costs to Canadians for dementia care will increase from $15 billion annually to $153 billion annually within a generation (20 years).
Long Term Care is costly, whether that care is provided in your own home or in a facility. Provincial health plans pay for part of the cost, but this amount varies depending on which province you live in: Tell Me More About Long Term Care Homes in Ontario.
Since the amount paid by provincial health plans is limited there can be thousands of dollars per year in expenses that must be paid out of pocket should you or a family member require long term care. There are facilities operating on a non-profit basis run by the Ontario Ministry of Health and Long Term Care. These are subsidized by the provincial government and have long waiting lists. If you want top notch care at a private facility the cost is significantly more and there are no subsidies.
Another option is home care, but the province only pays a limited amount for this. Help may be required with cleaning, cooking, buying groceries and other household duties, in addition to personal and medical care. One option is for an adult child with a family of their own, or who are themselves retired to provide the care. With the size of families getting smaller, and more people opting not to have chiildren, there may be few options.
The need is real, and medical advances that are prolonging life in quantity and quality are making Long Term Care Insurance an attractive option for many Canadians looking to protect their assets.
The companies we represent for Long Term Care Insurance are Desjardins Financial Security, and Sun Life.
Please contact us for more information about Long Term Care Insurance.
1) Financial Gerontology, Journal of the American Society of CLU and CHFCA, May 1997.