Canada is experiencing an unprecedented population growth in those aged 65 and older. With boomers entering retirement ages, our social landscape will continue to change dramatically. 

With the proportion of retirees to workers increasing, it places extra stress on our health care system. Can the government continue to provide the same quality benefits to the boomers entering retirement? If not, who will take care of retirees then, and how? 

To add to the problem, health and long-term care expenses continue to grow faster than inflation. The average stay in a long-term care facility is 3-4 years, and the provincial government only subsidizes the health care costs, leaving you to deal with the cost of accommodation.

In BC, the monthly rate for a long-term care facility, or nursing home, ranges from $1,000-$3,000 for government subsidized facilities, and from $3,200-$6,500 for private nursing homes. Can you afford it? What will it do to your retirement savings?

What you can do now to prevent your assets from being drained from the cost of living in a nursing home is to purchase a long-term care insurance policy.

A long-term care insurance policy will provide you with a monthly benefit if you are unable to perform 2 of the following 6 activities of daily living (ADL):

• Bathing – The ability to wash oneself in a tub, shower, or sponge bath
• Eating – The ability to feed oneself
• Dressing – The ability to put on or take off clothes or fasten and unfasten them
• Toileting – The ability to get to and from the toilet
• Transferring – The ability to move in and out of a chair, wheelchair, or bed without a cane or other supporting device
• Continence – The ability to maintain bladder control

Or if you begin to suffer from a cognitive impairment.

The lack of long-term care planning is common for the young and elderly alike. Don’t let the need for long-term care catch you by surprise. To get a long-term care insurance quote, please contact us with your date of birth, smoking status, and gender.