Long term care insurance will pay the insured individual a tax-free benefit every week, if their medical condition requires to be given assistance with two out of the six activities of normal daily life. Bathing, eating, dressing, toileting, maintaining continence and transferring are all among these activities, but the specifics are different for each policy. It can help you to prevent depleting your savings or forcing your family into debt due to unplanned medical expenses associated with the changes in lifestyle.
1. Who needs long term care?
Every seventh Canadian is a senior citizen today and belongs to this fast-growing group of the population. With the shrinking tax base that results from the rapid aging of working force and increasing medical costs, there is a certain need to gather additional finances which will cover these expenses. In reality, long term care protects the assets and health of two generations – both active income earners (who would need to find extra financial and emotional resources to care for their retired relatives) and senior citizens, who are dependent on their savings.