We usually take for granted our ability to carry out simple daily activities such as eating, getting dressed and walking. These activities of daily living are fairly routine and we do not give them much thought, until, one day, due to an accident, old age or illness, we need someone’s assistance to help with these ordinary tasks.
Truth is that an our health will likely deteriorate as we get older. The problem is that many live in denial of this reality.
Many Canadians mistakenly believe that full-time care in a long-term care facility will be fully paid by government health care programs. However, long-term care is not covered by the public health care system. The truth is that government health care programs may cover only a small part of the costs for a nursing home or other specialized residential care facility, or perhaps none at all depending on the circumstances. This means that individuals (or their families) will have to pay for a significant portion of the costs associated with a long-term care situation out of their own pockets.
What is long-term care insurance?
Long-term care Insurance (LTCI) provides for the payment of a monthly benefit to insured’s who have lost their functional independence due to a chronic illness, disability, cognitive impairment, such as dementia, or other age-related conditions preventing you from managing a number of the activities of daily living without assistance. It can cover stays in nursing homes and chronic care facilities or the services of a caregiver in your own home.
How to use benefit payment?
Eligible individuals are free to use their monthly or weekly tax free benefit as they see fit. The contract doesn’t require the insured to be admitted to a long-term care facility. The insured can continue to live in the comfort of his own home, if he/she wishes to do so. Plus, the amount of the benefit will not be affected if family members provide some of the care or perhaps insured decide to replace the lost income of a loved one that is providing the care they need and deserve, the choice and flexibility is theirs.
When benefits will start?
Most plans include a waiting period. This means once you qualify for benefits, you must wait a specified period of time before your benefits will be payable. Common waiting periods are between 30-90 days.
When will benefits be paid?
Long-term care insurance that guarantees the payment of a monthly benefit If the insured becomes unable to perform Two of the following six activities of daily living without the help of another person:
Or Suffering from a cognitive impairment, which needs on-going supervision from another person to avoid hazard for his security and other’s security. (For example, Alzheimer’s disease and other types of permanent senile dementia). To qualify for Independent Living benefits, the insured requires a doctor’s diagnosis. Long-term Care also offer free access to a full range of assistance services for expert advices. In case of loss of independence, other assistance services that are of inestimable value to the insured and his loved ones are offered.