Financial goals should include Long Term Care

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How do I integrate Long-term Care Insurance into my financial goals?

When considering Long-term Care coverage, it is best to begin by formulating a long-term care plan that addresses your wishes and considers your family situation as well. Perhaps begin by making a list of care items you will want to discuss with loved ones. Who will be your care manager? What responsibilities will they have? What responsibilities will you want other service providers to consider? To what extent are family members able or willing to provide care? Long-term care, if required, will involve the help of many, and by having meaningful discussions ahead of time, you and your family will be able to address concerns such as costs.

Prepare far in advance to determine how you will pay for such care in each possible scenario. Then call to inquire about care service companies, different residence types, volunteer groups, and care equipment companies.

As you consider purchasing Long-Term Care Insurance (LTCI), ensure that you have an understanding of what care services actually cost and what is covered in the contract. Then, with the help of an insurance broker, you can begin reviewing different types of LTCI plans and determine a plan best suited for your potential needs.

The real cost The very high cost for accommodation in a long-term care facility can range from $800 to over $5,000 per month depending on the room type and the level of government funding available in your province. Private home care service costs range from $12 to $22 an hour for home-making and personal care; to between $18 and $60 an hour for nursing care.

Source: Sun Life Financial

More than one-third of Canadians aged 45-64 who provided informal care to a family member or friend incurred extra expenses as a result of their care giving duties.

Source: Statistics Canada

• Long-term care expenses could easily total thousands of dollars per year.
• Provincial health insurance plans provide only limited coverage for long-term care.
• Long-term care insurance can fill the financial gap, and reduce the burden on loved ones while maintaining better control over your future.

Some believe that provincial health care plans fully cover long-term care, or that their employee benefit plans include long-term care coverage. Government programs are not comprehensive and Canadians have to pay for much of their care. Few employee benefit packages cover long-term care. The costs for long-term care, whether in your home or in a facility, can be high. How would you pay for the care you need?

• Use your savings or retirement income?
• Use what you have set aside as an inheritance for your loved ones?
• Use the equity in your home?
• Depend on your family?

Consider purchasing a Long-term Care Insurance plan. Your insurance specialist can help.

Source: Some of the concepts and information are used with the permission of Patty Randall who is widely considered a leading advocate on the need for care-years planning in our country. Visit her website: “Aging Successfully with Passion and Purpose and Care-Years Planning” online at www.longtermcarecanada.com for discussions, ideas and to obtain family materials on this issue

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