Long Term Care

The size of Canada's population over age 65 is expected to increase by 50% to 6,000,000 by the year 2016, dramatically increasing the numbers of strokes and stroke survivors unless effective systems for prevention and treatment are put into place, warns the Heart and Stroke Foundation. The Conference Board of Canada also notes that approximately 19% of the population will be 65 or older by 2021.

Stats Canada reports that on average, men will live to age 80, while women will live to age 85. By the year 2006, Ontario and Quebec will each have over 100,000 people in this age group, while six out of the remaining seven provinces will have at least 50,000. Every 90 seconds, a baby boomer turns 50.

As these demographic trends continue, an enormous amount of pressure will be placed on Canada's health care system. The average stay in a long term care facility is 6 – 7 years if you survive the first year and if you want to stay at home, 24 hour nursing care can cost up to $112,000 per year. (after tax dollars, as well). In an era of government cutbacks, Canadians can no longer assume that provincial health care plans will take care of all their needs if they develop a long-term illness or serious disability. Even if space is available in designated long term care facilities, these are not necessarily the places you would want to spend months or years of your life.

It's not easy to pay the difference between what provincial health plans cover and what people requiring long-term attention truly deserve. Think, for a moment about how you would finance care in a private facility with costs that can easily climb beyond $3,000 a month per person. Try to imagine how you would pay for home care services, which could end up costing even more. Without proper long term care planning, you may be forced to:

An innovative solution known as long term care insurance allows you to take control of your future needs, with the freedom to receive personal attention from caregivers in the comfort of your own home or to select a private care facility.

People are living longer, and post-retirement resources have to stretch over greater periods. Long term care policies can be purchased up to age 80 and funds paid out are tax-free. There is also a return of premium feature, which refunds 100% of your premiums if you pass away prior to filing a claim.

Few baby boomers say they're prepared to cope with the growing problem that looms ahead of them - caring for aging parents who have suffered a stroke, according to a new survey from the Heart and Stroke Foundation. This fact illustrates that the problem of dealing with the financial commitment necessary for one's parents could affect their children, as well.

It is fairly easy to qualify for long term care benefits if a Physician certifies that you' require extended care in a facility because of injury or sickness, cognitive impairment, inability to perform two or more specified activities of daily living, or medical necessity resulting from a chronic illness.

Rather than risk a heavy drain on your personal savings and a loss of your assets, long term care makes sense as an integral part of your financial planning.