Long-Term Care Insurance Quotes, Rates, and Expert Tips

What is Long-term Care Insurance

Long-term care insurance is a special type of insurance that reimburses you if you become dependent (need the help of another person) or unable to perform two out of six activities of daily living (ADL).

This list includes:

1. Transferring
2. Dressing
3. Bathing
4. Toileting
5. Eating
6. Continence (unable to hold the bladder and/or bowels)

Is Long-term Care (LTC) Insurance Worth It?

On average, 3 out of 4 people aged 65+ need some kind of assistance. Long-term care insurance closes this gap while allowing people who decide to stay at home instead of going into a long-term care facility to receive necessary support and resources.

Here are a few numbers from the home health services company Nurse Next Door, illustrating the cost of care for somebody at home:

LTC cost example #1: 2 visits per week, 3 hours each

This type of support is good for help with laundry, cleaning, and other household chores.

Typical long-term care costs: ~$550 / month

LTC cost example #2: 3 visits per week, 4 hours each

This type of support is good for support with bathing, shopping, bringing you to your appointments, cooking and administering medications.

Typical long-term care costs:  ~$1,500 / month

LTC cost example #3: 5 visits per week, 7 hours each

Full personal care and support for somebody who is paralyzed and/or is not independent.

Typical long-term care costs: ~$5,000 / month

As you see, long-term care insurance is worth it as it helps to cover very considerable costs that you can face when you need external health support.

Long-term Care Insurance: Ages Covered

Long-term care insurance can cover ages up to your 81st birthday, meaning that it is a great option for seniors.

It is a part of “future health care” as it offers a strategy in the age when people are not able to care for themselves.

Long-term Care Insurance Costs

Here is a sample of long-term care insurance costs for a 55-years old male:

Here is a sample of long-term care insurance costs for a 55-years old female:

Long-Term Care Insurance: Expert Summary

“Long-term care insurance pays out a benefit in the event that you can not complete 2 of 6 functions of daily living. Now, long-term care insurance in Canada has changed a lot in recent years.

There were a lot more carriers offering Long-Term Care coverage five or six years ago than there are today. Sun Life, RBC (Insurance), Manulife were all very big players in that marketplace. Now, not so much.

My Dignity is a plan that is still available in Canada and it offers some great solutions for people who wanna maintain their standard of living and wanna be able to maintain being able to live in their home without being a burden to their family. It can pay out a lump sum benefit to cover all the costs of daily living.”

Is Long-term Care Insurance Taxable?

Long-term care insurance benefits are tax free and you can use them to pay for long-term care home health services.

Long-term Care Insurance Companies

Despite a big demand for this type of protection, there is a very limited number of companies that offer long-term care insurance.

The MyDignity plan offers the most focused long-term care insurance. A few other companies offer some forms of long-term care insurance, mostly as conversion options on disability and critical illness plans, as seen with:

• RBC Insurance (limited conversion privilege on the disability insurance plan)
• Manulife (as a % of the coverage amount on its critical illness plan)
• Sun Life (Retirement Health Assist Plan but the minimum period to be able to claim is 6 years – which is very disadvantageous to a policy holder)

Our experienced long-term care insurance professionals can find a plan tailored to your needs.

Only a health declaration is required – there are no complicated underwriting requirements.