There may come a time in our senior years when we simply cannot live on our own. According to statistical data, every other Canadian is expected to need long-term care after they are 75 years of age. With increased longevity and population aging, it is in our own best interest that we think of these matters at an early age. In this article, we are going to give you an overview of long-term care insurance, as well as shortly introduce policies from three different prominent Canadian insurers to help you see the variations.
What is long-term care insurance?
There is a list of six general activities which are considered one’s “daily living”:
bathing,
eating,
dressing,
toileting,
maintaining continence,
and mobility (for example from a bed to a chair).
The exact list and specifications vary depending on individual policies. As soon as you are unable to perform two of those activities, you can reap the benefits of your long-term care insurance. The benefits consist of a recurring weekly tax-free benefit which will help you obtain any assistance you need.
Long-term care coverage eases the impact on the lives of not only you, but also your children who may want to find extra financial and emotional resources to provide for your needs. Long-term care plans do not normally offer preferred rates to non-smokers, nor do they distinguish between women and men.
How to choose your long-term care insurance policy?
What to keep in mind when you are choosing a long-term care insurance policy:
Make sure you understand any exclusions in the policy as to when and how you receive the benefit.
Decide how much funding you will need afford your long-term care, and for how long. A broker can help you make your estimate.
Find out about any add-ons which may be useful.
Read here if you are interested in finding out more about the details on Shopping for a long-term care insurance policy.
Comparing insurers’ offers
Leading Long-term Care providers in Canada include Ontario Medical Association/Sun Life, Penncorp Insurance Company, Manulife Financial, RBC Insurance, Desjardins or Blue Cross. We will look at some of them in turn.
Ontario Medical Association (O.M.A.) offers a long-term Care insurance policy to you and your family members 21 to 80 years old. The plan is underwritten by Sun Life Financial. The cost is the same as that of the Long-term Care plans available to Sun Life’s network. The plan has a rolling five-year guaranteed premiums and a possibility of no elimination period for facility care. The policy is receipt-based. Men have lower premiums.
Penncorp Insurance’s unique One Step Long-term Care Plan will pay out as soon as you have only one incapacity, including cognitive impairment, which allows the client to enjoy the broadest possible coverage. This is the plan’s specialty in the Canadian insurance market. One Step Long-term Care Plan by Penncorp is available to applicants aged 30 to 70. The policy unfortunately lacks a premium guarantee on the plan premiums.
Manulife Financial is trying to make things as simple as possible. Manulife’s plan is named Living Care. In order to apply, the applicant is only required to fill in an application form and take part in an interview. This is conducted by telephone if she or he is less than 70, and it takes place in person if he or she is 71 or older. In case of older applicants, the insurer may get in touch with your doctor in order to verify some additional medical information. Manulife hardly ever requires lab exams when you are applying for long-term care insurance. The plan is not receipt-based and has a minimum elimination period of 90 days, which is longer than most competitors.
Desjardin’s rates are above the average, although you can manage the money in any way you will and don’t have to provide any receipts. Plan premiums are only guaranteed for 5 years of the plan and favouring men.
As you can see, it may be difficult to understand all of the offerings in the market. Go to your broker to help you out.
To learn more about this topic, please take a look at our Long-term Care Consumer Report.
Click here if you want to find out more about enumeration of Interesting Random Facts About Long-term Care Insurance.
Tags: continence, emotional resources, free benefit, insurance policy, long term care, long term care insurance, preferred rates, statistical data, term care coverage, term care insurance