You are healthy now but watched a parent need years of care and saw how costly it became.
Why it fits: Applying while you are healthy can lock in coverage and help protect the nest egg you have worked hard to build.
Long-Term Care Insurance
Help paying for care when everyday tasks become hard, so your savings and family are not stretched thin.
Long-term care insurance pays a weekly or monthly benefit if you can no longer manage basic daily activities on your own or develop a cognitive impairment such as dementia. It helps cover care at home, in a retirement residence or in a long-term care home.
Overview
Long-term care insurance helps pay for the care you may need if you can no longer look after yourself because of illness, injury, aging or a condition like dementia. It pays a weekly or monthly benefit to help cover care at home, in a retirement residence or in a long-term care home.
Canadians are living longer, and many of us will need some help with daily tasks later in life. That care can be expensive, and the cost often falls on savings or on family members.
Why plan for care now
Provincial programs help, but they do not cover everything. Long-term care homes charge residents a co-payment for accommodation, waitlists can be long, and publicly funded home care may only cover a few hours a week. Long-term care insurance gives you extra money to fill those gaps and more say in where you receive care.
What to look for in a plan
When comparing long-term care coverage, consider:
- Benefit style: an income plan pays a set amount, while a reimbursement plan pays back eligible expenses.
- Waiting period and benefit length: how long before payments start, and how long they can continue.
- Premium guarantees: whether your premiums are locked in or can be adjusted by the insurer.
- Availability: few insurers in Canada currently offer standalone long-term care plans, so we will help you find the options available to you.
How it works
- 1
Choose your benefit and waiting period
Pick a weekly or monthly benefit amount, how long benefits can be paid, and a waiting period before payments start, such as 90 days.
- 2
Pay your premiums
You pay regular premiums while you are healthy. Applying earlier usually means a lower premium and an easier approval.
- 3
Qualify for benefits
You become eligible when a health professional confirms you cannot perform a set number of activities of daily living, such as bathing or dressing, or you have a cognitive impairment.
- 4
Receive your benefit
After the waiting period, the policy pays either a set amount you can use as you wish or reimburses eligible care costs, depending on the plan you chose.
Key benefits
Protects your savings
Benefits help pay for care so you do not have to drain your retirement savings or sell your home to cover the cost.
More choice in care
Extra money can help you pay for private home care or a residence of your choice instead of waiting for a publicly funded spot.
Support to stay at home
Many plans pay for care at home, which helps you live independently for longer.
Eases the load on family
Paid help means your spouse or children can focus on being family, not full-time caregivers.
Covers cognitive impairment
Plans typically pay if you develop a condition like Alzheimer's or another form of dementia, even if you can still manage physical tasks.
Peace of mind
Knowing you have a plan for future care can make retirement planning less stressful for you and your loved ones.
Who it’s for
You want to make sure that if one of you needs care, the other can still live comfortably.
Why it fits: A long-term care benefit helps pay for care without cutting into the income the healthy spouse relies on.
You live far from your aging parents and worry about who will look after them.
Why it fits: Coverage can pay for professional caregivers, so your parents get help even when you cannot be there.
Pros & cons
Pros
- Helps pay for care at home or in a facility
- Protects retirement savings and your estate
- Covers both physical and cognitive decline
- Gives you more control over where and how you receive care
Things to consider
- Few insurers in Canada currently offer standalone plans
- Premiums can be significant and may not be guaranteed
- You may need to qualify medically, so it is harder to get later in life
How it compares
| Ways to pay for long-term care | LTC Insurance | Paying Out of Pocket | Provincial Care Only |
|---|---|---|---|
| Upfront cost | Ongoing premiums | None until care is needed | None |
| Cost when care is needed | Largely covered by benefits | Full cost from savings | Co-payments for long-term care homes |
| Choice of care | High | High while savings last | Limited |
| Wait times | Can pay for private care right away | Can pay for private care right away | Waitlists are common |
| Impact on savings | Protected | Can be large | Moderate |
Run the numbers
Long-term care costProject what care at home or in a residence could cost in the future.Frequently asked questions
What are activities of daily living?
Activities of daily living (ADLs) are basic self-care tasks: bathing, dressing, eating, toileting, continence and moving in or out of a bed or chair. Most plans pay when you need help with two or more of them, or have a cognitive impairment.
What is the difference between income and reimbursement plans?
An income-style plan pays a set benefit you can use however you like. A reimbursement plan pays back eligible care expenses up to a limit, so you need to submit receipts.
Doesn't my province already pay for long-term care?
Provinces help fund long-term care homes and some home care, but residents usually pay a co-payment for accommodation, waitlists can be long, and home care hours are often limited. Insurance can help fill those gaps.
Is long-term care insurance easy to find in Canada?
Only a small number of insurers currently offer standalone long-term care plans. We will review the options available to you, along with alternatives like critical illness coverage, and help you find the best fit.
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