Long-Term Care Insurance Quotes
Long-term care insurance provides financial protection if you lose your independence and need ongoing care because of aging, illness, injury or cognitive decline. Depending on the policy, benefits can help pay for care at home, in a retirement residence or in a long-term care facility.
Unlike disability insurance, which is designed to replace income when you cannot work, long-term care insurance is designed to help fund the cost of care and protect your retirement savings and family from a prolonged financial burden.
At A Glance
- Protect your retirement savings from the potentially significant cost of long-term care
- Receive an income-style benefit if you become dependent and meet the policy's definition of eligibility
- Choose how to use your benefit to help pay for care at home, in a retirement residence or in a long-term care facility
- Plan ahead while you are healthy and still able to qualify for coverage
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My Simple Process
1. Learn
Arm yourself with the knowledge you need to make the right decision and learn all there is to know about long-term care insurance.
2. Consult
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3. Apply
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4. Servicing
We're here to provide ongoing support with your policy, including changes, assisting with claims, and more!
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The Basics
What is long-term care insurance?
Long-term care insurance is designed to provide a benefit if you become dependent on others for ongoing care.
Depending on the policy, you may qualify because you need substantial assistance with activities of daily living or require ongoing supervision because of cognitive impairment. The benefit is paid directly to you and can help cover the cost of the care you choose.
How does long-term care insurance work?
You pay premiums to maintain your coverage. If you later meet the policy’s definition of dependency and satisfy any waiting period, the insurer pays the benefit specified in your policy.
Long-term care insurance policies provide an income-style benefit rather than reimbursing specific expenses, giving you flexibility in how the money is used.
What can long-term care insurance pay for?
Long-term care insurance can help pay for a wide range of care and support, depending on the policy.
This may include care in your own home, a retirement residence, assisted living or a long-term care facility.
Why consider long-term care insurance?
The cost of care can create a significant financial burden over a long period of time.
Without dedicated coverage, you may need to fund care from retirement savings, investments, other assets or support from family members. Long-term care insurance can provide another source of funding and help protect the assets you planned to use for retirement or leave to your family.
Dive Deeper
How do you qualify for long-term care insurance benefits?
Each policy has its own definition of dependency. Common requirements involve needing substantial assistance with activities of daily living, such as bathing, dressing, eating or transferring, or requiring constant supervision because of cognitive impairment.
The exact definition matters because meeting a medical diagnosis alone does not necessarily mean a claim will qualify.
What are the activities of daily living?
Activities of daily living are basic activities that people normally perform independently, such as bathing, dressing, toileting, transferring, continence and feeding.
Long-term care policies may use these activities when determining whether you are dependent and eligible for benefits. The number of activities and level of assistance required can vary between policies.
How does long-term care insurance differ from disability insurance?
Disability insurance is designed to replace part of your income when an illness or injury prevents you from working.
Long-term care insurance is designed to help pay for the cost of care when you can no longer live independently. The two types of insurance protect against different financial risks and can complement each other.
How does long-term care insurance differ from critical illness insurance?
Critical illness insurance generally pays a lump sum when you are diagnosed with a covered critical illness and meet the policy requirements.
Long-term care insurance focuses on loss of independence and the ongoing need for care. You may qualify for LTC benefits without having a specific critical illness, provided you meet the policy’s definition of dependency.
What is the waiting period for long-term care insurance?
The waiting period is the period of dependency you must satisfy before benefits begin.
For example, Sun Retirement Health Assist currently offers a choice of a one-year or two-year waiting period. The appropriate waiting period depends on how much of the initial cost of care you are comfortable funding yourself.
How much long-term care insurance do you need?
The appropriate benefit amount depends on your retirement income, savings, assets, family resources and the type of care you would want.
A larger benefit may provide greater flexibility and reduce the amount you need to withdraw from your retirement portfolio, while a smaller benefit may offer a more affordable way to transfer part of the risk.
How much does long-term care insurance cost?
Premiums depend on factors such as your age, health, benefit amount, waiting period and policy design.
The cost should be considered alongside the potential financial impact of paying for years of care from your own retirement assets.
What long-term care insurance options are available in Canada?
The Canadian long-term care insurance market is relatively small compared with life, disability and critical illness insurance.
Sun Life currently offers Sun Retirement Health Assist, an income-style long-term care insurance policy for Canadians age 45 to 71. Current plan options include weekly benefits from $125 to $2,300 and one- or two-year waiting periods.
Because product availability can change, it is important to review the current options and policy terms when considering coverage.
Does long-term care insurance cover home care?
Yes, depending on the policy. Long-term care insurance can provide benefits for care received in your own home, a retirement residence or a long-term care facility.
This flexibility can be important if your preference is to remain at home for as long as possible.
Does long-term care insurance cover dementia or Alzheimer's?
A policy may provide benefits when cognitive impairment causes a level of dependency that meets the contract’s definition.
For example, Sun Retirement Health Assist can qualify an insured person who requires constant supervision because of deteriorated mental ability resulting from an organic brain disorder such as Alzheimer’s disease or irreversible dementia.
Are long-term care insurance benefits tax-free?
For an individually owned income-style long-term care policy, cash benefits are generally not taxable. Premiums are not tax-deductible, but may qualify for the medical expense tax credit (METC).
Frequently Asked Questions
Is long-term care insurance worth it?
Long-term care insurance can provide a source of income if you need prolonged care and help reduce the amount you need to withdraw from your retirement savings.
Whether it makes sense depends on your assets, retirement income, family resources, preferred type of care and ability to self-fund a long-term care need.
Who should consider long-term care insurance?
It may be worth considering if you want to protect retirement savings, maintain greater control over your choice of care or reduce the potential financial burden on your family.
It can be particularly relevant for people approaching retirement who have accumulated significant savings but do not want those assets reserved for retirement income or their estate to be consumed by care costs.
When should you buy long-term care insurance?
Long-term care insurance is generally easier to consider before a significant health issue develops, because you must qualify for coverage when you apply.
Many products are designed for people planning for retirement or already approaching retirement. Sun Retirement Health Assist, for example, currently accepts applicants from age 45 to 71.
Can long-term care insurance protect your retirement savings?
Yes. The purpose of the coverage is to provide a dedicated source of funds for care, potentially reducing the amount you need to withdraw from your retirement portfolio.
The impact can be significant when care is required for several years.
Can you use long-term care benefits for any purpose?
With an income-style policy, the benefit is generally paid directly to the policy owner rather than reimbursing individual care expenses.
This can provide flexibility to use the benefit for care and other expenses related to your circumstances, subject to the policy terms.
Can you get long-term care insurance if you have pre-existing conditions?
Possibly. Long-term care insurance is medically underwritten, so your health history can affect your eligibility, premiums or coverage.
The outcome depends on the condition, severity, treatment history and other underwriting factors.
What happens if you never need long-term care?
The outcome depends on the policy. Some policies include return-of-premium provisions that can return some or all premiums to your estate or beneficiary if you die before benefits become payable, or offer an optional return-of-premium benefit with different conditions.
For example, Sun Retirement Health Assist includes an automatic return of premium on death before the coverage effective date, with an optional return-of-premium feature available after that date.
Why Work With An Independent Insurance Advisor
Buying long-term care insurance isn’t simply about finding the lowest premium. Because the Canadian market is relatively small, the key is understanding how the available coverage fits your retirement plan and what happens if you eventually need care.
As an independent insurance advisor, I can help you:
- Assess your potential need for long-term care coverage based on your retirement income, savings, assets and family circumstances
- Compare available long-term care insurance solutions and policy designs
- Understand how benefits are triggered, including definitions of dependency, activities of daily living and cognitive impairment
- Compare benefit amounts, waiting periods and policy features, including inflation protection and return-of-premium options
- Evaluate the coverage alongside your other insurance, including life, disability and critical illness insurance
- Navigate medical underwriting and the application process
- Review your coverage over time as your retirement plans, assets and financial circumstances change
The goal isn’t simply to buy long-term care insurance. It’s to understand the financial risk you’re trying to protect against and determine whether the coverage fits into your overall retirement plan.
What's the next step?
You can request a personalized long-term care insurance quote or book a free, no-obligation consultation to discuss whether this type of coverage fits your retirement plan.