Long-Term Care policies provide a Facility Care Benefit. The Facility Care benefit will be payable when health or personal care services are required on a long-term basis in a long-term care facility at the order of a physician. This could be the result of an injury or sickness, the inability to perform two or more activities of daily living, on the basis of cognitive impairment, or due to medical necessity caused by chronic illness.
The Facility Care Benefit is available in daily units and is payable after the Elimination Period has been satisfied. The benefit will be paid directly to the policy owner and will be paid in addition to any government benefits that the insured may be receiving.
How Will It Affect My Finances?
Long-term care costs can be expensive, For example, depending on their province, Canadian can spend up to $4,000 a month out of their own pocket for facility care that’s subsidized by government programs.
The cost for private, non-subsidized retirement home ranges from $ 2,500 to 7,500 per month.
Even if you choose to stay at home when receiving the care you need, you still have to pay for private nursing, and for service such as shopping, cooking and cleaning. Theses everyday expenditure can add up to thousands of dollars over a period of required long-term care.
There are additional options, which can be added into the basis policy.
Home Care Benefit
The Home Care Benefit reimburses you the cost of medically necessary service that are suggested by a physician and provided by a licensed nurse, authorized employee of Home Care Agency, or private caregiver, in your own home.
Return of Premium
The return of premium benefit return to the Policy owner’s beneficiary the sum of all annual premiums paid without interest for facility care, your annual policy fee and the premiums paid for the Return of Premium benefit at your death, if no facility benefit has been paid.
Cost of Living Adjustment Rider
Cost of Living Adjustment Rider ensure that while you are getting long-term care benefits, your daily benefit will be adjusted annually in line with the Consumer Price Index, to a maximum of 4%.
Future Purchase Option Rider
This rider allows you to buy additional long-term care coverage, up to maximum amount on specified dates, without providing medical evidence.