Long-Term Care Insurance

Generally, the younger and healthier you are, the lower the premiums and the easier it is to qualify. Many people start looking into it in their 40s or early 50s.

Premiums vary based on your age at application, health status, the benefit amount, benefit period, waiting period, and any optional riders (like inflation protection) you choose. Our mentors can help you get personalized quotes.

Benefits typically become payable when you're certified by a healthcare professional as being unable to perform a certain number (usually 2 or 3) of the Activities of Daily Living (ADLs) – like bathing, dressing, eating, toileting, continence, transferring – or if you have a severe cognitive impairment.

It depends on the specific health conditions and their severity. Some conditions might make it harder or more expensive to qualify, while others may not be an issue. It's best to discuss your situation with a knowledgeable advisor.

It's easy to confuse different types of insurance. Here's a quick comparison:

Long-Term Care Insurance: Provides ongoing financial support specifically for extended care services when you can no longer care for yourself "Activities of Daily Living" (ADLs) independently – such as bathing, dressing, eating, transferring (moving), or toileting – or if you require substantial supervision due to cognitive decline.

Critical Illness Insurance: Pays a one-time, tax-free lump sum upon diagnosis of a specific, covered critical condition (like cancer, heart attack, or stroke). This money can be used for any purpose, but it's not designed for ongoing care costs.

Disability Insurance: Replaces a portion of your income if you are unable to work due to an illness or injury, typically during your working years.

Life Insurance: Pays a tax-free lump sum to your beneficiaries upon your death.

LTC Insurance can cover costs for nursing care, rehabilitation, personal support workers, homemaking services, adult day programs, respite care, and accommodation in facilities.

Optional Riders: Features like inflation protection (to help your benefit keep pace with rising costs) or return of premium options may be available.

The move away from actively selling standalone LTC policies by many Canadian insurers is mainly due to profitability struggles associated with the product's long-term nature of claims and unpredictable costs. However, the need for long-term care (LTC) planning has not disappeared, and coverage is often still accessible through riders attached to other types of insurance policies.

It's a type of insurance designed to help cover the costs of care services over an extended period when you can no longer perform certain daily activities independently or have a cognitive impairment. It helps pay for services like home care, assisted living, or nursing homes.