Long Term Care Insurance

Long Term Care

Canadians are living longer than ever before, which is great news. But as we reach age 65, the likelihood of needing some form of long-term care support reaches 43%⁽¹⁾.

If you become unable to care for yourself, or should the same happen to your spouse or parent, long-term care—at either a facility or at home—may be necessary. With the high cost of care and the coverage gaps that exist in provincial health insurance plans, the expenses can be staggering:

• In BC, the out-of pocket costs for a long-term stay at a government-subsidized nursing home can reach as high as $2,161.71 per month⁽²⁾.
• In BC, the average cost for a room in a privately-owned retirement residence is $1,527-$4,774 per month for a semi-private room and $1,600-$7,750 for a private room. These costs would be out-of-pocket as government subsidies are not available for private facility care⁽³⁾.

Provincial health insurance plans simply don’t have the resources to pay the full cost of long-term care, even in subsidized facilities. They offer NO coverage for private facility care, and pay only a limited amount for care at home. The expenses for private nursing, cooking, cleaning, shopping, etc. will be largely your responsibility.

Over time, these expenses can add up to thousands of dollars. Without proper planning, the cost of long-term care may quickly deplete your savings, assets and retirement income.

Advantages and features

• Pays a tax-free monthly benefit if you lose your independence due to physical or mental limitations following an illness or accident
• You can use the non-taxable benefit however you want
• You select the benefit amount, the payment period and the waiting period (or elimination period)
• You can also benefit from other options like:
  • Premium refund at death
  • Cost-of-living increases