LIVING BENEFITS - LONG TERM CARE
It provides benefits to pay the cost of health and personal care services for someone who becomes unable to care for him or herself.
Definition: When the insured needs the help from another person to accomplish at least 2 of the following common activities of daily living; bathing, dressing, eating, toileting, continence, transferring. Or, the insured is suffering from a cognitive impairment, the insured need to be supervised continually to avoid hazard for his security and other's security.
Source: Desjardin Financial
Most of us can expect to celebrate our 80th birthday. That’s wonderful news. But studies show that nearly half of today’s population over age 65 will need some form of long-term care. And while long-term care is primarily required by seniors, younger people may need long-term care too.
Sources: LIMRA MarketingFacts, Summer 2001, New England Journal of Medicine
Long-term care costs can be expensive. For example, depending on their province, Canadians can spend up to $4,770 a month out of their own pocket for facility care that is subsidized by government programs. The cost for private, non-subsidized retirement homes ranges from $2,500 to $7,000 per month.
Sources: Province of Alberta health care web site. Canadian Senior Year - Ken McNaughton, CFP, CLU, CH.F.C.
- Will you outlive your RRSP?
- Are you looking for a financial planning retirement strategy that allows you to use your RRSP for other things besides a loss of independence?
- Should you require long-term care, you may be forced to put your spouse’s retirement savings at risk, or you may have to liquidate your assets at a time when market conditions are poor, to help pay for the substantial cost of what could be years of professional care.
- Are you concerned about leaving behind a legacy for your family, charity, church, community, etc?
- According to the New England Journal of Medicine, 42% of people who turned 65 in 1990 will spend time in a nursing home before they die.
- An aging population means the largest percentage of our population is nearing retirement with continued high expectations for their standard of living.
- People aged 65 or older account for 50% of hospital days, 40% of prescription drug expenses, and almost 100% of LTC days.
- New technology and medical breakthroughs are prolonging life, but at the same time contributing to a greater number of people living longer with chronic, disabling conditions.
In the event of a loss of independence, what means the most to you?
- Avoid placing the physical and financial hardships associated with a loss of independence on your family and friends while preserving your assets and retirement savings.
- Having the financial means to pay for the level of care you need, the ability to preserve your dignity and give you the peace of mind you deserve.
If you become one of the half of those aged 65 or older who require some form of long-term care, will you be able to:
- Preserve your assets and savings?
- Remain in the comfort of your own home without being a burden on others?
- Receive the necessary, immediate and affordable assistance you need?
- Maintain your standard of living?
- Protect your family’s financial security?
Source: New England Journal of Medicine
A Long Term Care plan can help preserve your parents’ quality of life, dignity and financial security in the event of a loss of independence with such benefits as:
- A tax-free monthly benefit
- Freedom to use the monthly benefit as they wish (no receipts required).
- Receive the quality of care they need, in their own home or in a long-term care facility
- Replace lost income of immediate family or friends providing them with the tender loving care they deserve.
- Preserve a legacy for future generations.
Sources: Statistics Canada, New England Journal of Medicine & Desjardin Financial.
- Receive an extra or alternate source of income when you need it most!
- If you require care due to an illness, accident or diminished physical or mental capacity, Long Term Care can provide you with a (tax-free) monthly income to help bridge the gap between your personal savings and provincial and private health insurance coverage.
C.J.Matthews & Associates Limited is associated with the following providers of Long Term Care plans; Desjardin Financial, RBC Insurance and Manulife. For further information, please contact Allan Muise or John Simms.
Links for Long Term Care Information:
http://www.manulife.ca/Canada/ilc2.nsf/Public/LB_LC
http://www.rbcinsurance.com/lh/tlc.html
http://www.dsf-dfs.com/en-CA/Prtclrs/EvlBsnsSmltrs/AssrncSnt/AssrncSnt.htm
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