Many Canadians believe that full-time care in a long-term facility will be paid by government health care programs. The truth is that the government health care programs may cover only a small part of the cost of a nursing home or other specialized residential care facility, or non depending on the circumstances. This means that you or your family will have to pay a significant portion fo the cost associated with a long-term care situation out of pocket.
What is long-term care insruance
Long-term care insurance provides financial protection should you become unable to care for yourself because of a chronic illness; disability; cognitive impairment, such as dementia; or other age-related conditions preventing you from managing a number of activities of daily living without assistance. It can cover stays in nursing homes and chronic care facilities or the services of a caregiver in your own home.
There are two types of long-term care insurance plans:
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one reimburses you for eligible expenses that are outlined in your plan that you may incur on a given day, up to a pre-determined maximum.
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The other is an income style plan, which offers a pre-determined monthly benefit amount. with this style you will receive a regular benefit that can be spent in any way you choose. you can use it to pay a professional in a residential facility or home care or you can pay someone in your own family to care for you.