Long Term Care Insurance
A time might come that due to age or illness you will need help to perform the routine activities of daily living like moving or dressing. In the event of a loss of independence long term care insurance will provide for the monthly benefit that you are free to use as you choose, without having to submit invoices or supporting documents.
You could obtain all the care your condition requires, at home or at specialized centre, for as long as your loss of independence lasts. Among other things, you may compensate your loved ones for taking care of you.
Life expectancy is rising. The life expectancy of a male in 1950 was 66.8 years and it grew to 77.5 years in 2005. Average life expectancy of a female in 1950 was 71.6 years, and 82.4 years in 2005.
So, we are living longer these days, but with age, the risk of losing independence rises too. The longer you live, the greater your chances of requiring some assistance to sustain your independent living lifestyle.
Between ages 65 and 74 years – loss of independence ratio is 1 in 3 people, for people 85 years and over it is 4 in 5 people.
- Alzheimer’s disease
- Heart disease
- Stroke
- Cancer
- Injuries (e.g.hip fracture)
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The cost of remaining in your own home could be substantial:
| Basic care (average cost) | Special Care (average cost) |
Assistant:
3hrs/day*$20/hr=$1,800/month | Assistant:
3hrs/day*$20/hr=$1,800/month
Nurse:
1 hr/day*$50/hr=$1500/month
Specialized care:
2 hrs/3 weeks*$50=$100
Total:
$3,400/month
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- Cost of living in a private long-term care facility varies from $2,000 to $8,000/month (Phone, cable, dentist, hairdresser, music, etc. are extra). Average waiting period for a room in a private long term care facility could range from 2 to 9 months.
In some instance, people have waited as long as 3 years for a private room…
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Admittance into a government subsidized long-term care facility is not only based on the loss of independence rather on the individual’s condition requiring several hours of care per day and proof that these services cannot be provided by the immediate family or friends.
Here are Ontario co-payment rates as of July 1, 2008
| Basic or standard accommodation | $1,543.95/month |
| Semi-private accommodation | $1,787.29/month |
| Private room accommodation | $2,132.00/month
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Optional service should be purchased for an additional fee.
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You will receive a tax-free monthly benefit if you become unable to perform 2 of the following 6 activities of daily living without the help of another person:
- Bathing
- Dressing
- Toileting
- Transferring
- Continence
- Eating
- If you are suffering from a cognitive impairment that is endangering your health or safety. Cognitive impairment – defines as loss of mental capacity demonstrated by a person's ability to think, perceive or remember. Such impairment results in a person inability to care for him/herself without on-going supervision from another person (Alzheimer, dementia or senility).
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You make the choice as to where you go instead of having to go where you are taken
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You use your benefit the way you see the fit: You can even replace the lost of income of a loved one (caregiver) who is caring for you.
- Person who has a history of serious illness in his/her family.
- Person who doesn’t want to be a burden to the family
- Person over 50 years old who doesn’t have enough money to comfortably pay for long term care out of his/her savings
- Children who want to make sure they will have resources to pay for long term care of the elderly parents
