Long Term Care in Canada - Explanation in 10 Short Points

At senior age, it's very likely that we'll run into a situation when we'll need daily assistance in our living. According to the Underwriters LTC council in Canada, the likelyhood of needed long term care reaches 50 percent after the age of 75. This article deals precisely with this issue and teaches the basic definitions associated with long term care policies.

Definition - long term care insurance will pay the insured individual a tax-free benefit every week, if their medical condition requires to be given assistance with two out of the six activities of normal daily life. Bathing, eating, dressing, toileting, maintaining continence and transferring are all among these activities, but the specifics are different for each policy. It can help you to prevent depleting your savings or forcing your family into dept due to unplanned medical expenses associated with the changes in lifestyle.

The basic need for long term care - Every seventh Canadian is a senior citizen today and belong to the faster growing group in population. With the shrinking tax base that results from the rapid aging of working force and increasing medical costs, there's a certain need to gather additional finances which will cover these expenses. In reality, long term care protects the assets and health of two generations - both active income earners (who would need to find extra financial and emotional resources to care for their retired relatives) and senior citizens, who are dependent on their savings.

Temporary long term care vs. Ongoing long term care - it's important to note the differences between the two to understand your coverage. Temporary care occurs for weeks or months, and is generally used to describe rehabilitation periods from a hospital stay, recovering from surgery, illnesses or injuries or terminal medical conditions. Ongoing long term care means the need of assistance in case of chronic medical conditions or chronic severe pain, permanent disabilities or dementia.

Skilled care vs. Custodial care - another difference which is important to touch upon. Skilled care refers to services which can be provided only by licenced medical personnel. Custodial care refers to those services and supplies which can be given by any individuals without a specific skill set, provided that through documentation and a treatment plan is approved by medical supervisors. Some long term policies only cover skilled care.

Setting - long term care can be provided at home, in the home of a family member or friend of the recipient, adult day services location, in an assisted living facility or board-and-care home, hospice facilities or nursing home. This is an important point - many policies have limitations and pay off only when facility care assistance is required and do not cover home care.

Elimination periods - another important aspect of long term care policies which refers to the amount of time which must pass before you begin to receive your weekly benefit. The benefit period determines how long you'll receive the coverage for.

Premiums - premiums are determined by three factors - the elimination period, benefit period and the amount of daily benefits. Pay extra attention to premium caps, as most LTC policies in Canada offer guaranteed premiums only for the first 5 years after the policy takes effect.

Riders - long term care plans have several riders which are worth looking at. The most important ones are the "cost of living adjustment" and "return a premium" riders. The former allows the benefit to be raised according inflation, whereas the return of premium benefit returns the premiums to your beneficiary in the event you pass away.

As the last words in this article, I would like to stress the importance of working with an independent insurance professional, to ensure a larger pool of available options and unbiased advice compared to captive agents.

Rate Article

Related Videos
Play Video How Much Long-Term Care Insurance	Play Video Long-Term Care Insurance	Play Video New Developments in Long-Term Care Policies	Play Video Long Term Care Insurance	Play Video The Pros and Cons of Latchkey Kids

Listed below are more articles related to the above article from the "Insurance" article category.

People interested in the above article "Long Term Care in Canada - Explanation in 10 Short Points" are also interested in the related articles listed below:

 

Protecting your Wedding: A Piece of Cake

Cutting the cake can be one of the most anticipated moments of a wedding. After you've exchanged rings and said your vows, what better way to celebrate your wedding than sharing those beautiful tiers of sweetness with all your guests?

Sine-qua-non: Long Term Care Insurance

No one ever wanted to encounter losing the ability to care for ones self. If there was one thing that one could wish away, it would be the unforeseen financial and personal risks and the exorbitant cost of Long-term care (LTC).

Know All About The Workers Compensation Insurance

Intego is a nationwide, experienced, specialized, and focused agency. We offer the finest industry products using the most sophisticated web-based technology and back them with unparalleled customer service. Let us show you how this powerful combination can improve your business process-giving you more time to build your business and keep your customers happy.

The Importance of Insurance Coverage for Young People

Debt reduction law centers appear to be on a relatively better position than insurance companies especially with the ongoing recession. When it comes to finances at this day and age, being young and single often means there's a huge possibility that you are preoccupied about getting rid of your debt or saving your home rather than thinking about your insurance coverage. This is often due to a widespread belief that right now, insurance is one of a young person's least important concerns and that it is not quite practical to acquire it in the middle of an economic crisis.

Wedding and Events Insurance or Provides Piece of Mind

Planning a wedding is something lots of girls start thinking about from a very early age! But one thing most little girls don't think about, when doodling their dream wedding dress, is insurance. Wedding insurance is perhaps not the most exciting things happy couples have to think about in the lead-up to their wedding but since weddings can cost between •£15,000 and •£25,000, it's an important to detail to work into your plan.

Is Your Home Haunting Your Insurance?

Since insurance is based on the sharing of risk, your home's history could very well play a significant part in determining your insurance premium as it could increase the home's risk profile. This is not confined to risks such as burglaries, but also applies to any claims that may have been made by the previous owners.

How Marriage Affects Your Insurance

Getting married is undoubtedly one of the busiest and most stressful times of your life. You have all sorts of arrangements to make and you have a deadline so you have to make them quickly. You probably can't think of anything other than getting married to the person of your dreams and feel you can only afford to focus on your big day. Although this is understandable, and indeed expected, you also need to consider your insurance.