The most recent Canadian statistic regarding long-term care reported that in 2012 about 2.2 million Canadians with a long-term illness, disability or ageing needs had received care in their own home in the last 12 months (Statistics Canada, 2012). The statistics also showed that the vast majority (88%) of care receivers relied on help from family and friends. Statistics Canada states that over 350,000 Canadians, 65 or older, and 30% of those older than 85, will reside in long term care facilities.
A person caring for an aging parent or spouse while having a family and job pressures of their own are often torn between their obligations to their parents, children and careers.
There is a beneficial solution which takes in to consideration planning for retirement which could help alleviate the cost and burden of ongoing care. The solution is long term care insurance and it is offered by several insurance carriers.
If a person does not consider long-term-care insurance (which pays a benefit to cover the cost of long-term-care), they could be faced with a large ongoing financial burden. According to Sun Life Financial the cost for Long term care is shocking:
Private room in a nursing home: $1707 to $2361/per month
Assisted living: Private Home Care
Meal Preparation: $13 – $32/per hour,
Personal Care (Bathing, dressing): $13 – $32/per hour
Skilled Nursing: $30 – $100/per hour
24 Hour Live-In Care $5.95 – $29.09/per hour
The cost of providing for long term care is on the rise and is also becoming more common. Many Canadians assume that full-time care in a long-term care facility will be completely paid for by government health programs. Unfortunately, this is not accurate. The real fact is that the government will only pay a small portion of the costs for a residential care facility. The baby boomer generation is getting older which means that there will be an ongoing strain on government resources. By purchasing long-term-care insurance, you can control your own destiny and make sure that you have the proper protection if you ever require it.
When you build and review your retirement income plan, it is important to consider all of your future health care needs. Long term care insurance can help you protect this plan – helping you maintain your standard of living while making it easier on your loved ones so that they do not suffer the financial burdens. Always make sure that you fully understand the options that are available to you and the benefits included in the plan.