Long Term Care Insurance Information

Who Should Buy Long Term Care Insurance?

Long Term Care Insurance is a living benefit that provides financial protection in the event of disability, chronic illness, cognitive impairment or other age-related conditions that would prevent a person from taking care of themselves.

There are two types of Long Term Care Insurance.

1. Reimbursement Plan: Reimbursement of eligible expenses as outlined in the long term care insurance contract up to a pre-determined maximum.  These expenses could include private duty nursing, homemaking services etc.
2. Income Style Plan: A plan that would include a pre-determined monthly or weekly benefit amount. The monthly benefit could be used for any expenses incurred by the insured.  For example, the funds could be used to cover the cost of a long term care facility, or they could be used to pay a family member to help care for the individual in their own home.

How Long is the Waiting Period?

Most Long Term Care Insurance plans include a waiting period between 30-90 days.  Once an individual qualifies, they must satisfy the waiting period before the funds are released to the individual.

Is Long Term Care Insurance Necessary?

We recommend you consider buying a long term care insurance plan if:

• You are planning for your retirement and want to protect your assets and/or your estate
• You want flexibility and control so you won’t have to rely on the government or others for your care
• You want freedom and the ability to choose the type and level of long term care you want
• You are expected to be a caregiver for your spouse or parent and would like to have the financial freedom to care for them (you can insure them and protect yourself)

What Do Long Term Care Facilities Cost?

The average cost of a one-bedroom suite in a long term care facility in Alberta ranges from $2,658.00 to $4,440.00 per month.  Private home care costs in Alberta can range from $12 to $90 per hour for homemaking services, or personal/nursing care.  These costs can add up quickly.  For example, if you required placement in a private long term care facility at $5,000 per month, or needed long term home care for 5 days per week for four hours a day at $35.00 per hour, this would amount to $35,000 to $65,000 per year, depending on the type of care required.