Long term Care insurance provide care to those who are unable to care for themselves due to deteriorated mental abilities, age, accident and illnesses and require nursing care or personal care to help with activities of daily living, or supervision by another person. If the insured can’t perform at least two of the activities of daily living (ADL) he /she is eligible for benefits.
Activities of daily living (ADL)
Nursing care or personal care could be provided in a long term care facility, adult day care or in the home.
Some policies provide an income when you require care, and the income can be used to cover the cost of any type of services without the proof of eligible expenses. Even the care received from family members is considered as eligible expenses.
There are people who believe that provincial health care plans fully cover long term care, and employee benefit plans include long term care coverage but government programs are not comprehensive and few employee benefit packages cover long term care.
As government programs are not comprehensive you have fewer choices about the quality and the care you receive. You may prefer a private long term care but provincial plans do not cover costs for private facility care, and you can’t afford to pay on your own because it is costly, and it can easily dilute your life savings. Long term care insurance bridges the gap between what is provided and what you prefer, and you have choices about the quality, amount of care you receive, from where and by whom. And it can be tailored to your needs and budget.
Most of the Canadian long term Care Insurance providers guarantee no premium increase for 5 years. After 5 years, premiums can increase, but it can never be more than 50% of the original premium over the lifetime of the policy
Most of the long term Care Insurance plans include a Waiver of Premium Benefit and when you are collecting LTC you don’t have to pay premiums.
There are different kinds of long term care insurance plans, and you can choose from $70.00 a week to $2000.00 a week, and a coverage that will last over a year to an unlimited period of time. Depending on the plan, you can also choose a waiting period of 0 calendar days to 180 days, and the longer the waiting period, the lower the premium.
Also you can have many optional benefits including:
Return of Premium (ROP): If you die while your policy is in force your beneficiary will get back all premiums paid, less any benefits already paid to you.
Cost of living adjustment (COLA): This is an inflation protection benefit and your benefits will be adjusted in line with the Consumer index to a maximum of 4%.
Future Purchase Options: Purchase additional long term care coverage on specified dates, up to a maximum amount, without providing medical evidence of your health.