What is long term care insurance?
As the hustle and bustle of everyday life goes on, it can be easy to take our ability to perform day-to-day activities for granted. But, this can change, and the chances of us not being able to perform these everyday activities increases with age. This is why it is so important to consider your future healthcare needs as you build and review your retirement savings and income plans.
Who will need long term care insurance?
Most of us, with advancements in healthcare and technology, can expect to live past our 80th birthday. That’s wonderful news, but there are implications on our ﬁnances that must be taken into consideration. Nearly half of our population over age 65 will need some form of long term care. And while long term care is primarily required by seniors, younger people may need long term care too.
How will needing long term care affect my finances?
Most people believe that long term care is subsidized by the government. While that is true, there are extra expenses with long term care that can add up. In fact, Canadians can spend up to $4,500 a month out of their own pocket for facility care that is subsidized by the government.
Even if you choose to remain at home while getting the care you need, you will still incur expenses such as private nursing, personal shoppers, and people to come cook and clean for you. These expenses can add up to hundreds of thousands of dollars over the period of care. While we are lucky that our provincial plans are fairly comprehensive, they don’t cover the full costs of subsidized care facilities, limits on the amount paid for care at home are imposed, and of course, they don’t cover the cost of private care facilities.
Long term care insurance provides a daily beneﬁt if you lose the ability to care for yourself, and require the services of a long-term care facility or professional assistance at home. Talk with an advisor today.