Long Term Care Insurance

Features of Long Term Care Insurance

  • Provides money for in home or nursing home care when one can no longer perform a number of activities of daily living (eg. bathing, dressing, moving about etc).
  • Available for people aged 40 to 80.
  • Having a policy is like having your own private medical plan, so are you no longer dependent on provincial health care.
  • Cost is not as dependent on current health as it is on lifestyle and mobility. For example, someone that has survived cancer may not qualify for other forms of insurance, but may qualify for long term care insurance.
  • Perfect for those approaching retirement age, who do not want to become a burden on their family.
  • At some point in their lives, 8 out of 10 people will require some form prolonged care.
  • The cost of care can easily be upwards of $40 000 to $60 000 dollars a year. This easily erodes life savings, making this form of insurance a must-have for retirees.
  • You have permanent coverage, but premium payments are usually limited to 20 years.
  • The time to start thinking about purchasing long term care insurance is in your 50's. A $1000 a year policy you take out in your 50's would cost $3400 to take out in your 70's.


  • You select the amount of facility care coverage (the daily amount you would receive while in a facility), as well as the amount of home care coverage.
  • Daily benefits range from $10 to $300 a day.
  • Benefit period (once you go on claim, the length of time you can collect) can be 1 year, 2 years, 5 years, or lifetime.
  • Return of Premium: repays all your money to your beneficiaries if you die without ever collecting on your policy (some restrictions may apply).  If you have received home care but not facility care, you may still be eligible for a return of facility care premiums.

Uses of Long Term Care Insurance

  • Protect retirement savings
  • Maintain independence and dignity