LONG TERM CARE INSURANCE SERVICES
INSURANCE BROKERS IN MISSISSAUGA, ON
Long Term Care Coverage is very different from Life Insurance, Critical Illness Protection, and Disability Insurance. It is more related to people 50-55 and older. Long Term Care Insurance provides benefits to pay the cost of health and personal care services for someone who becomes unable to care of himself or herself. To ensure a comfortable future, it makes sense to purchase long-term care insurance at about age 55.
The basic coverage provides benefits to pay for health and personal care services for an insured person residing in a long-term care facility. You can also purchase additional coverage that would pay for home care provided in the comfort of the insured person’s own home. Home care also includes help with everyday tasks such as cooking, cleaning and shopping. Depending on the plan selected, a policy could specify that benefits be paid for one year, two years, five years, or for the insured person’s entire life. The coverage becomes popular in Canada because of baby-boomers.
Long-term care can take place in the home or community, a retirement home or in a long-term care facility.
- Home or community careIf you wish to remain in your own home for as long as possible, you can apply for government subsidized home care. A care coordinator will determine the number hours of home care you are eligible for each week. And if you feel you need more hours, you could pay $25-$60 an hour out-of-pocket.
- Retirement home and assisted living careIf you are independent, but no longer wish to live in your current home, you may choose to move into a retirement or assisted living home. These privately-owned residences provide accommodation, meals and activities, but are not covered by government subsidies. Costs range from $1500-$6000 per month depending on where you live and the type of accommodation you choose.
- Long-term care facility when you can no longer live independently, and need 24-hour care or supervision, you can apply for long-term facility care. These facilities (also called nursing homes, municipal homes for the aged or charitable homes) are operated by the provincial government. While the province pays for your care, you are still required to pay for your accommodation. As of July 1, 2019, the province’s monthly maximum rate is $1,891.31 for a basic ward room, $2,280.04 a month for a semi-private room and $2,701.61 for a private room.
Long-term care insurance can help cover out-of-pocket expenses. The cost of providing these services may quickly exhaust the savings of the individual and/or their family.
Premiums paid on long-term care insurance products may be eligible for an income tax deduction. The amount of the deduction depends on the age of the covered person. Benefits paid from a long-term care contract are generally excluded from income.
If you require long-term care in a healthcare facility, your provincial health insurance plan may provide limited coverage. Even if the facility is subsidized, government benefits may come up short. Plus, provincial plans do not cover any costs for private facility care. A facility care plan fills the gap by helping to protect your future and your financial independence.
A Financial Advisor is responsible for asking you about the risk factors that will determine your category involved in taking a particular policy. These questions involve your family’s medical history and your health, in addition to your lifestyle habits or that might affect your health in the future. For example, smoking and some dangerous hobby changes your risk category.
Answer the question with all honesty; if you are not true, this could negatively affect your family’s right to collect on your benefits if the insurance company finds that you lied on your application. Once you’ve been accepted and acknowledged the Long Term Care policy, tell your family members about the insurance policy. It is a way of protecting your family’s financial structure.
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DISCLAIMER
Commissions, trailing commissions, management fees, and expenses all may be associated with segregated fund investments. Please read the prospectus before investing. Segregated funds are not guaranteed, their values change frequently and past performance may not be repeated. Insurance products and services are provided through DIFFERENT CANADIAN INSURANCE COMPANIES.
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