Increasing life expectancies have led to increasing costs in the latter stages of life. How will you pay for this and will you be able to keep your financial independence?
Long Term Care is costly, whether that care is provided in a facility or in your own home. Part of the cost is paid by provincial health plans, but this amount varies depending on which province you live in.
Due to the limited amount paid by provincial health plans there can be thousands of dollars per year in out of pocket expenses should you or someone you care about require long term care. Some facilities are subsidized by provincial plans, but if you want care at a private facility that cost is borne entirely by you or your loved one.
Another option is to be cared for at home, but again provinces only pay a limited amount for this. You or your loved one may require help with cleaning, cooking, buying groceries and other household duties, in addition to medical care. These costs will be paid mostly the individual or other family members. The other option is that someone will have to take time off work to help with these tasks, and that will result in lost wages, time with young children etc.
What are the Chances of Needing Long Term Care and what are the Costs?
As the age of 65 is attained, the likelihood of needing some form of long-term care support reaches 43 % (1).
If you need care at a facility or at home, the costs are high:
- In Ontario, the out-of pocket costs for a long-term stay at a government-subsidized nursing home can reach as high as $2,161.71 per month(2).
- In Ontario, the average cost for a room in a privately-owned retirement residence is $1,527-$4,774 per month for a semi-private room and $1,600-$7,750 for a private room. These costs would be out-of-pocket as government subsidies are not available for private facility care (3).
The need is real, and medical advances that are prolonging life in quantity and quality are making Long Term Care Insurance an attractive option for many Canadians looking to protect their assets.
The companies we represent for Long Term Care Insurance include RBC Insurance, Desjardins Financial Security, and Sun Life.
Please contact your advisor for more information about Long Term Care Insurance.
1) Financial Gerontology, Journal of the American Society of CLU and CHFCA, May 1997. 2) As at July 1, 2008. Long Term Care in Ontario - 2009 Report , RBC Life Insurance Company and Taking Care Inc. 3) Long Term Care in Ontario - 2009 Report , RBC Life Insurance Company and Taking Care Inc.