What is long-term care insurance?
Long-term care insurance provides the insured with a weekly tax-free benefit in case they require assistance with any two of the six activities of daily living – namely dressing, going to the bathroom, bathing, eating, maintaining continence, and transferring (for example from a bed to a chair) – although the exact list depends on any individual policy˳
The coverage is designed to ease the burden of two generations – your children, who would have to set aside extra resources to care of you, as well as you, who may otherwise be required to tap into your savings˳ Unlike life insurance, most long-term care plans do not usually offer a discount to non-smokers, nor do they distinguish between male and female applicants˳
How to choose your long-term care insurance policy
Here’s what you should keep in mind when choosing this type of insurance policy:
1˳ Make sure you understand everything, including the exceptions in the policy regarding how and when you receive coverage˳
2˳ Choose how much income you’ll need to afford your long-term care, and for what time˳ Your broker can help you estimate˳
3˳ Inquire about any riders of interest to you˳
4˳ Compare insurers’ offers˳
As far as individual companies are concerned, you can buy this kind of insurance policy from the Ontario Medical Association/Sun Life Insurance, Penncorp Insurance Company, Manulife, Desjardins, RBC Insurance, and Blue Cross˳ We’ll quickly look at a handful of them now˳
The Ontario Medical Association (OMA) offers a long-term Care insurance policy to clients and their family members from 21 to 80 years of age˳ The policy is actually underwritten by Sun Life Financial˳ The cost is identical to Sun Life’s˳ The plan has a rolling five-year premium guarantee and offers a zero-elimination period for facility care˳ The policy is receipt-based, and males receive cheaper premiums˳
Penncorp Insurance’s One Step Long-term Care Plan pays out as soon as the client has one incapacity, including cognitive impairment, which allows the client to take advantage of the best possible coverage˳ This is the policy’s specialty in Canada˳ The One Step Long-term Care Plan by Penncorp is open to applicants from 30 to 70 years of age˳ However, there’s no premium guarantee on the plan’s premium˳
Manulife Financial is banking on simplicity˳ An applicant is merely required to fill in an application form and take part in an interview – by telephone if he or she is younger than 70, and in person if he or she is over 70˳ If you are 71 or older, a doctor may be contacted to verify additional medical information˳ As a rule, Manulife hardly ever requires laboratory exams as part of their long-term care application process˳ The policy is not receipt-based, and it has an elimination period starting at 90 days˳
At Desjardins, the rates are a little more expensive than the competition’s˳ You can use the funds as you wish and are not required to provide any receipts˳ Premiums are guaranteed for the first five years and favour males˳
As you can see, the offer is pretty large, and thus it may be difficult to keep track of all products˳ Therefore I highly recommend collaborating with an experienced life insurance broker who’s well-versed in this area of expertise˳
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