Long term insurance: preserve your assets

You have spent your life working to acquire the better things in life such as:

• a home
• a prosperous retirement
• an estate to pass to your heirs

But have you planned for the possibility of needing long-term care? Thanks to our healthier lifestyles and medical innovations, we can look forward to enjoying longer lives. Today, most Canadians can expect to celebrate their 80th and maybe even their 100th birthday. However, studies show that as a result of living longer nearly half the population over age 65 will need some form of long-term care. This includes help with household chores, and on-going support from medical professionals, such as nurses and professional caregivers. It can be provided in a facility or in your home. Either way, it can be quite costly.

Some typical expenses:

• Depending on the province, out of pocket costs for government-subsidized facility care can cost up to $4,770 a month.
• The cost for private, non-subsidized retirement homes ranges from $2,500 to $7,000 a month.
• At-home services can involve private nursing ($30 to $38 an hour), and help with shopping, cooking, cleaning ($19.50 an hour for a personal support worker).

Canadians are fortunate to have a fairly comprehensive health care system. However, it cannot provide all the options and flexibility you would need if you face a long-term care situation.

The result?

Many of us may be forced to withdraw from retirement savings and family assets to help pay the cost of what could be years of long term care. Consider this: 10 years of care at $30,000 per year could wipe out $300,000 of savings and assets. Where would that leave a healthy spouse who may require care in later years?

Fortunately, there is a way to help you protect your assets and lifestyle. Long Term Care insurance (LTC) helps preserve your accumulated savings, your family's lifestyle and financial security, and can ensure that your estate is passed on to your heirs. More importantly, it gives you options so that you can make decisions about the most suitable personal care.

LTC allows you to:

• Select care in a setting that is most appropriate for your needs, or receive professional attention at home.
• Pay for out-of-pocket medical expenses that may only be partially subsidized by provincial health plans.

For a small premium today, you can remove this risk from your financial plan and focus your attention on other goals that you have set for you and your family.

If you would like more information on how Long Term Care insurance may help you, please contact our office for an appointment.