Long-Term Care Planning

Since the 1920s, the number of seniors over the age of 85 has doubled to one out of every 10 people. According to Statistics Canada, this number is to increase to five times the current demographic by the 2050s. That means that half the population in 25 years will be over the age of 85.

Long-term care Insurance (LTCI) is an insurance contract with an insurer designed to provide care for chronic illness, disability, or accident, all of which are more likely to occur as we age.

When our health is fine, it is hard to imagine that we may, as many will, lose the ability to manage our basic daily activities such as bathing, toileting, walking, dressing, feeding, or moving from bed to a chair. Many also lose mental faculties we often take for granted, such as memory, logical or conceptual thinking, or referencing dialogue with others. Without assistance, it is nearly impossible to function without these capacities.

LTCI protects our families from the financial strain of providing long-term care, just as importantly as life and disability insurance protect the income of younger families. The ultimate question is, who will financially support long-term care for you? LTCI is not just for seniors but for those who become similarly incapacitated at any age.

We must independently plan for our long-term care because our government healthcare budgets and initiatives are limited. Facilities are often understaffed with overworked or burned-out employees. Strict regimes are frequently the norm where the government foots the bill in both government- and privately-run institutions (many private companies provide government-funded care). For example, bathing can be limited to twice a week, toileting to three times a day, elders may not be allowed to nap, and most are all placed in bed at 8:00 pm to be awakened to prepare for breakfast at dawn. These are the governmental necessities where a limited budget provides extensive health care for the aging populace.

Most people understand the need to save for retirement, which can provide an income sufficient to meet our lifestyle expenses. However, most people overlook the enormous expense of paying for a private long-term care facility (some cost up to a quarter of a million dollars for five years). Why are they so expensive? They offer 24/7 high-level nursing care in a highly secure environment. Note: Anyone can call a few private long-term care companies and inquire about their care costs.

The time is fast approaching when aging baby boomers starting to retire will increasingly depend on long-term care, either paid for by themselves, their children, or professional health care services.