Long Term Care
We all plan on being healthy throughout our lifetime, but sometimes the aging process can prevent us from doing things that we now take for granted. While it is certainly unpleasant to consider the possibility of Long Term Care in your future, the following statistics illustrate the need to protect yourself against the Long Term Care risk.
Canada’s population is aging. Currently, 12% of the population is over the age of 65. According to Statistics Canada, that number will increase to 21% by the year 2026.
Since 1920, life expectancy has increased by an average of:
- 7 years for men to age 75
- 13 years for women to age 81
Those aged 85 and over represent the fastest-growing segment of the senior population. Statistics Canada has projected that there will be almost 1.6 million Canadians aged 85 and over in 2041, more than 4 times the current figure.
- In 1996, only 7% of the elderly were in assisted living or formal long term care programs. The rest were living in the community by themselves or with the support of their families.
- In 1996, 29% of people age 65 and over lived alone, compared to 8% of those aged 15-64.
- Seniors were three times more likely than those aged 45-64 to be hospitalized in 1997.
- Seniors currently make up almost three-quarters of all people living in institutions.
The Long Term Care Insurance need
Why do YOU need Long Term Care Insurance?
People are living longer today than ever before. We take better care of ourselves by exercising and adopting proper eating habits, and we have better health care services available at our fingertips.
With the advancement of medicine, people are more likely to survive conditions that in the past would have led to death. Chronic diseases like Alzheimer’s, Parkinson’s, Cancer, Arthritis, Stroke and Lung Disease are now disabling conditions rather than terminal illnesses.
If you become chronically disabled or mentally impaired, your provincial government plan may cover only a portion of the care, assistance and supervision you may need. If you do qualify for a full government subsidy, you will have to abide by their terms and conditions – government nursing homes, government regulated home care and only the benefits allowed within their parameters. The subsidy level for nursing home care is reviewed annually. If your income exceeds this level, you would be eligible for only a partial subsidy, or you could receive no subsidy at all on the cost of your accommodation.
Private nursing homes can cost more than $3,000 per month. Government nursing homes can cost less, but often have long waiting lists. Home care providers, which may include a private registered nurse, charge a rate of approximately $35 per hour. Less skilled care, like assistance with eating or light housework, can cost approximately $15 per hour.
With the demands of everyday living, few people are in a position to devote the hours per day it takes to care for a loved one, no matter how much they would like to do it. A recent Canadian Study of Health and Aging stated that the reduction in the number of people able to provide informal care to family members will add to the increased demand for high-cost institutional care.
In our role of Independent consultants, we have developed a criterion that we follow when selecting a specific product, as well as insurer that will issue your contract.
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