Long Term Care Insurance

Why ?     Plan Types     Optional Benifits

Why ?


Consider a Long Term Care policy to be your retirement ‘disability’ insurance provider. Beyond age 65, over 70% of Canadians will find themselves needing various levels of medically supervised care, either within a ‘facility’ or their home.

This loss of independence and ensuing care is expensive, whether cost sharing for a basic Government subsidized facility, or from the private sector.

Protecting your retirement and family assets from the erosion caused by spiraling medical care costs is the primary purpose of a Long Term Care policy. It will alleviate your immediate family and children from the onerous responsibility of actually providing care – or having to fund it. Medical science has provided us with a much longer life – but living it can become very expensive.

Plan Types


A) A Reimbursement policy is one where the claimant or the person acting on their behalf submits the ‘facility’ or ‘home care’ expenses to the insuring company. They, in turn, pay the individual up to the limit of their insurance monthly benefit.

B) An Indemnity policy pays out the insured’s monthly benefit directly to the insured. They can then pay for a ‘facility’ or ‘home care’ as they choose.

To claim benefits, Long Term Care policies define medical impairment or loss of independence as follows:

1) The inability to perform two of the six normal activities of daily living (A.D.L’s) without substantial assistance. These include eating, bathing, dressing, continence, toileting and mobility.


2) Cognitive impairment which includes impaired memory or attention or loss of intellectual capacity that requires supervision.

Optional Benifits


1) Return of Premium on the death of the insured.

2) Cost of Living adjustments annually on benefits paid.

3) Limited future benefit increases non-medically.

4) Home Care as an option with some companies.