Will you and your loved ones have enough funds to last through the golden years? Will you be financially secure if you outlive your savings? How will you cover the costs in the event that you require care? Issues such as these should be taken into consideration so that you are financially prepared for the future. Careful planning helps with peace of mind without having to place a burden on family and friends down the road.
According to the chart below, the average cost of Long Term Care (LTC) in Canada is $61,500.
These ranges cover the cost of care for couples at different income levels. The starting income level is $22,394 (very low) and the highest income level is $184,500 (three times average). Average is $61,500. Source: N. Fernandes and B. Spencer, “The Private Cost of Long-Term Care in Canada: Where You Live Matters,” Canadian Journal on Aging 29 (3), 2010.
||Range of LTC costs for married seniors who are both in care
||$16,548 to $24,021
||$16,864 to $36,500
||$21,682 to $50,882
||$18,756 to $51,100
||$19,394 to $43,297
||$15,906 to $57,670
||$19,201 to $28,541
||$19,922 to $47,450
||$17,882 to $24,314
||$20,246 to $43,848
When planning for your retirement, you have to keep in mind that you may need to cover the cost of care. These costs can be due to an illness, accident or diminished physical or mental capacity. Your investments and retirement savings may not be enough to cover these expenses.
Activities of Daily Living (ADLs) is a term used to refer to people’s daily activities. Think of the activities you do to get your day started:
- Climb out of bed
- Use the bathroom
- Take a shower
- Get dressed
- Brush your hair
- Have breakfast
If you are unable to perform two out of the six activities and own Long-Term Care insurance, you could qualify to receive benefits. Long Term Care benefits provide an additional source of income that can help when you need it the most. Long Term Care is a tax-free monthly benefit to help supplement your savings, provincial and private health insurance coverage.
Eligibility for Long Term Care does not depend on admission to a care facility nor do you have to obtain any receipts for the care received. You have the freedom to use your benefit the way you see fit.
Contact YourStyle Financial if you would like assistance with planning your retirement for you or a loved one and to discuss if Long Term Care coverage is right for you.