What is long term care insurance?
As time marches on, the onset of a chronic condition, degenerative illness or dementia could mean you or a member of your family will need constant care for an extended period, either at home or in a nursing home. And contrary to common belief, this care is not fully paid for by provincial governments.
Long term care insurance provides an income-style benefit if you become unable to care for yourself due to aging, an accident, illness or deteriorated mental abilities. The money is for you and your family to use as you wish – you do not need to submit receipts for reimbursement – giving you more control and choice while helping to protect your savings and income.
It’s easy to take our ability to perform day-to-day activities for granted. But this can change, especially as we age. Therefore, it’s so important to consider your future healthcare needs as you build and review your retirement savings and income plans.
You should consider long term care coverage if:
- You’re concerned your retirement income might not last for your lifetime if your health deteriorates and government programs are insufficient to meet your needs
- You want the financial resources to help you choose the type and level of care that’s right for you if you have an accident or need substantial care later in life as you age
- You want to protect your wealth and legacy from being eroded by the cost of care
Long term care insurance can help you:
- Bring care into your home so that you do not need to downsize or move to a facility right away
- Lessen the burden on care-givers and support your family financially if you are going to live with them if you need care
- Manage your care and expenses if you have an unexpected severe accident, at any age, that results in your needing substantial assistance from a family member or care-giver
You should know what coverage is available?
Depending on the plan, you can purchase benefit amounts as high as $10,000 per month. Some plans require you to submit receipts up to a non-cumulative monthly maximum. Others offer an income-style benefit that will pay you a pre-determined amount each month to use for whatever you and your family may need.
What it covers
The proceeds from LTC insurance can pay for your care at home, at an adult day-care program, in an assisted-living or long-term care facility. These programs and facilities provide services such as nursing care, personal care or homemaking services.
What it costs
Your insurance premiums will depend on your age and health when you apply, so coverage is typically less expensive for younger applicants. The annual cost will also reflect the type and amount of coverage you choose, the length of time benefits will be paid and the waiting period you select. All LTC insurance policies have a waiting period of 30 to 180 days or longer from the time you first become dependent until you can start receiving benefits.
What “dependent” means?
Typically, LTC insurance benefits are payable when you become dependent on another person for care. This means you need: constant supervision by another person because of your deteriorated mental abilities; substantial physical assistance with two activities of daily living (from a standard list of six); or stand-by assistance for bathing and transferring (e.g., moving from a chair or out of bed).
When benefits are payable?
You can make a claim to receive your benefits when your coverage becomes effective. In many cases that’s immediately upon successful purchase. Other products are now available that provide coverage only after age 65. Once coverage is effective, your dependency will have to persist for the number of days in your selected waiting period before you start receiving your benefits. Some plans will pay your benefits for up to one year, while other plans may pay for two years, five years or even an unlimited period.
LTC insurance benefits can give you flexibility and control so you don’t have to borrow money, deplete your retirement savings or sell your house to pay for the care you need
Please call me or text me and I can provide more information to help you decide whether LTC insurance is right for you at 647-4075731 or at 905-369-0222. I can also be reached via email firstname.lastname@example.org