Planning for Long-Term Care
As we age, the odds of incurring an injury or major illness, which will prevent us from performing simple daily functions, increase substantially. Today, one in three people over the age of 65 will require assisted care of some sort; and past age 75 the odds increase to one out of every two people. With the average cost of nursing care now surpassing $3000 a month, it’s no wonder that long-term care often decimates the savings and assets of the seniors who need it.
While there is a portion of seniors who have amassed enough assets to be able to cover the staggering cost of long-term care, most Canadians could use up their savings within a few years. Canadian Pension Plan pension benefits vary from person to person, and typically do not come close to covering the kinds of costs associated with long-term care facilities.
Long-Term Care Needs
With the odds of needing care so firmly stacked against seniors, long-term care insurance (which has only become available in Canada, fairly recently) is a practical solution to protect their assets and ensure that seniors receive quality care. Seniors who can no longer perform basic daily living functions such as walking, bathing, or dressing usually need the assistance of a home healthcare nurse or a nursing home facility; and when an individual is so dependent on this assistance it is imperative that they receive the best quality of care available.
Covering Long-Term Care
Seniors may have several options for covering their long-term care expenses. Reverse mortgages are becoming a popular method of liquidating the equity in a home. However, there are many pros and cons to acquiring a reverse mortgage; an accredited financial specialist can discuss the advantages and disadvantages with you in greater detail. A long-term care insurance policy is often the most reasonable solution. However, you should also note that your age, and other external factors, could disqualify you from long-term care insurance, so make sure to discuss your options with a financial specialist ASAP!
Long-term care insurance policies have proliferated in the last couple of years. There are a vast number of companies that offer an expanding menu of different long-term care products, and that can make the task of choosing the right policy, daunting. Working with a specialist who has access to the long-term care products of several companies will ensure that you receive unbiased guidance and a solid policy.
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2023 Advisor Websites.