Who really needs long-term care?

By Lina Demedieros

Potentially everyone needs Long Term Care even though we all expect to live to a ripe old age due to advances in medical technology. It has become the primary concern of the average baby boomer born in 1947 to 1968. We are all now feeling the effects of how much time and money it takes with our own elderly parents. While some of us insist on providing care, we are inevitably faced with facility care as the only solution. This very decision can emotionally destroy us until we come to terms with it.

The loss of independence such as bathing, eating, toileting, dressing, transferring becomes a full time job. The Survey of Ontario Nursing home residents reveals that:

86% had limitation associated with continence
72% with transferring
60% with toileting
39% with eating

No statistics for bathing and dressing due to overwhelming prevalence

So who needs it? Everyone! Some of the reasons for Long Term Care include Alzheimer’s at 64% including Dementia or any other mental disorder. The high prevalence of Alzheimer’s often requires intensive care. The average individual requires 2 years of home care before even considering facility care. This responsibility is generally left to a female in the relationship.

Here are some questions you need to ask yourself. (a) Can you really depend upon the government for funding your long term care needs? (b) Are you afraid of losing your independence? (c) Are you aware of friends and family that require facility care?

Surveys report that (a).46% of Canadians do not believe that government funding will address their retirement home care or facility care needs. Approximately (b) 66% of Canadians fear losing their independence and don’t believe they can rely on their children. (c) 54% of Canadians are aware today of people receiving either home care later resulting in facility care. The majority of Canadians understand that they will not have the income or support and look at Long Term Care insurance as a solution to plan for the future.

So how much does Long Term Care insurance cost?

	$300,000 with benefit option 0.5%		$150,000 with benefit option 1%
Age 50	Male	Female	Male	Female
Base only	87.20	119.39	73.14	94.09
Base + IPR	127.69	185.89	108.21	148.41
Base + IPR + ROPD	166.73	231.78;	141.04	183.83

*In this case, both sets of numbers would provide a home care benefit of 1,500 per month. The difference is how long the benefits would last.

You can add to the base plan an Inflation Protection Rider or as illustrated on the 4th row pick Inflation Protection Rider plus Return of Premium on Death;( refunding the benefit not used). These policies can be purchased for a single and or a couple. This ensures that in the event one does not need the benefit the other can have the peace of mind of long term care. Rates are guaranteed for 5 years and you can also purchase plans for only home care and /or for facility care only.

The return of premium on death option refunds premiums you have paid less any benefits you have collected. There is really no monetary loss to you and at the end of the day you have peace of mind.

For more information on Long Term Care and any other questions on living benefits, please call us toll free at 1-800-236-5810. Lina M. Demedeiros, Living Benefits Specialist, E&O.E.

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