Understanding Long Term Care Coverage


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I easily get wrapped up in our work and need a reality check. Nick Murray, a known voice among financial advisors, gave the keynote address.  Most notably, he focused on two key goals that seniors face: dignity and independence.

These two goals must guide our retirement planning even before discussing investments, estate planning and insurance. More than ever, dignity and independence can only be achieved through purposeful planning. Adding to this, families and cultures have varying ideas of their duty to seniors. In Canada, government plans like CPP, OAS, medical coverage and other social programs provide a foundation. Additionally, seniors usually have various levels of wealth to boost  their own independent lifestyles. Moreover, all these factors will be impacted by families’ changing abilities to take care of seniors on their own. Finally, increasing healthcare expenses and increasing life spans extend the challenge. As a result,many more people are in danger of outliving their nest-eggs!

Planning Options

One helpful option is long term care coverage. It provides tax-free monthly cash to cover in-home or facility long term care. Long term care coverage pays benefits when you need help with two or more of the six basic “Activities of Daily Living” (ADLs). They include:

  • bathing
  • eating
  • dressing
  • toileting
  • maintaining continence
  • transferring (for example, getting into and out of a chair or bed)
Further, it also covers cognitive impairment (such as Alzheimer’s) and your doctor recommends constant care because you are no longer safe on your own. In contrast, another option is to deplete your savings or lean on your children to pay the expenses. That flies in the face of the dignity and independence goal, doesn’t it?

Long Term Care Coverage Bottom Line

Deep down, most people share a common goal.  They want to boost the size of estate left to their children. Consequently, when choosing care services for themselves, they will often choose cheaper and inferior options. They will compromise their comfort to prevent shrinking their estate. Long term care coverage provides tax-free monthly cash to fund the long-term care lifestyle that expands dignity and independence. Given the choice, most people would prefer the insurance company to pay the bill! Unfortunately, long term care coverage is not available to all. You must medically qualify. Please click below and request a free quote to start the conversation.

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