Planning for long term care

Most mature Canadians plan for a long and comfortable retirement. But, as we learn anew every day, planning is one thing, reality is another. The hope is that you and your spouse will stay healthy but the reality is that your health or your spouse's health may change and you may require nursing services and long term care.

Research shows that the need for long term care is not uncommon:

• About 50,000 strokes occur in Canada each year—and stroke is the leading cause of transfer from hospital to long term care.

• 1 in 11 Canadians over 65 is affected by Alzheimer's disease or a related dementia.

• 7% of Canadians age 65 and over reside in health care institutions.

• An additional 28% of Canadians 65 and over receive care for a long term health problem but do not live in a health care institution.

While many Canadians believe that all long term care services are paid for by their provincial health care system, or are covered by group insurance plans, Bonnie Siemens, a manager of insurance products for Investors Group, says that about two-thirds of Canadian adults who have needed personal care in the past did not receive that care from government-subsidized programs.

Siemens agrees that Long Term Care insurance may provide the protection you need for your retirement nest-egg. It pays out benefits when you require a nursing home, or care in your own home.

This type of insurance generally provides benefits related to physical or cognitive impairment, including: medical, home care, daily care in an adult day care center, 24-hour care in a long term care facility, the services of a registered nurse in your home, and similar services where there are costs that arise arise during the period of impairment. With Long Term Care Insurance, you will not have to rely on your family for financial help or hands-on care—giving you and those you love the opportunity to spend quality time together in a financially stress-free environment.

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Research sources include the Canadian Institute for Health Information, 2003, Alzheimer Society website, 2009, and Statistics Canada, 2002.

This column, written and published by Investors Group Financial Services Inc. (in Quebec—a Financial Services Firm), presents general information only and is not a solicitation to buy or sell any investments. Contact a financial advisor for specific advice about your circumstances. More information on this topic can be obtained from your Investors Group Consultant.