Long Term Care Coverage is very different from Life Insurance, Critical Illness Protection, and Disability Insurance. It is more related for people older than 50-55 years old. Long Term Care Insurance provides benefits to pay the cost of health and personal care services for someone whobecomes unable to care for himself or herself. To ensure a comfortable future, it makes sense to purchase long-term care insurance at age about 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.

With an ageing population comes the increasing costs of geriatric medical care. Currently we are spending $3.9 billion each year on Alzheimer's and dementia. By 2031, the number of Canadians afflicted with some form of dementia will more than double, to 750,000.

Our medical system is already unable to deal with the overload, and we are seeing drastic cuts in funding for residential long-term care. This shift towards "less costly" community-based care has dramatically increased the demand for home care, but at the same time the average number of home care hours you might have received a few years ago has dropped from over 20 hours per week to just 2-4 hours per week!

Again, those of us who have elderly parents and friends might be forgiven for feeling somewhat cynical about the current debate surrounding two-tier medical services. When it comes to long- term care for our loved ones, it is readily apparent that a two-tier system is already well entrenched. In short, the services are available, if you can write the cheque.

So…what are the chances that you will need long term care? It's true, we are living longer - in fact, in 1996, life expectancy at age 65 was 18.4 years, 5 more than in 1941. But the other side of the coin is that of those 18 years, on average, 9 are relatively healthy, and the other years include 3 years each of slight, moderate, and severe disability. In fact, it is estimated that at least 40% of all people over 65 will need some form of long-term health care services.

Unless you have medically trained family members, who are willing and able to drop everything and tend to you around the clock, you could find your retirement savings liquidated in a few short years if you elect to pay for private home care or facility care. Consider the following:

Current home care costs about $30 per hour, and up to $50 per hour for some services

Even a government facility will cost you from $750 to $1500 per month, in addition to the subsidy

Private facilities range from $2500 to $7000+ per month! And don't forget, this is the cost per person, not per couple.

Fortunately, there is now available in Canada insurance to cover the ongoing expenses of long term care. Available in the United States for decades, this coverage has recently been made available in Canada. Those of us whose practices consist largely of seniors know that it is long overdue.

Long-term care insurance covers virtually all of the expenses of long-term care, either in your own home or in a facility, for periods ranging from a few years to lifetime coverage. If you are between the ages of 30 and 80, you can apply for coverage. Depending on the level of benefit you select, you can receive up to $300 per day - tax free!

Features of Long Term Care Insurance

Provides money for in home or nursing home care.
Available for people aged 40 to 80.
Perfect for those approaching retirement age, who do not want to become a burden on their family.
Daily benefit available from $10 to $300 a day.

Having a policy is like having your own private medical plan. You can now afford the service you want, so you no longer depend on provincial health care.

At some point in their lives, 8 out of 10 people will require some form prolonged care.

The cost of care can easily be upwards of 40 to 60 thousand dollars a year, making long term care insurance must for retirees.

You have permanent coverage, but premium payments are generally limited to 20 years.

“Long-term care can be rewarding for both caregivers and care-receivers but it is time for millions of Canadian boomers and seniors who are often in denial about growing older to become aware of the challenges associated and plan for this stage of life, before care-crises create a tsunami in their lives.”