Critical Illness PLUS Long Term Care

Critical Illness Insurance provides a non-taxable, lump sum benefit (in most cases) 30 days following the diagnosis of a covered event.  Critical Illness Insurance claims are paid regardless of severity of the illness or condition, degree of disability, or ability to work and once again live a normal life.  Claims are not subject to interpretation and ongoing qualifications; instead, benefits are promptly paid when the clearly defined conditions are met.   The benefit could be put to a number of uses to assist in health care and allow one to cope financially with the adjustment needed to recover and live with the illness.  For example, the Critical Illness benefit could be used for:

Out of Country health care, Avoiding hospital waiting lists, Covering non-insured health expenses, Offset lost income, Home renovations, Debt elimination, Long term care, Supplemental monthly income.

Critical Illness Insurance can provide coverage for a variety of illnesses including the following:

In the Fall of 2004 an industry-wide survey revealed that 38% of all claims submitted were denied because they did not meet the plan definition.  This is why everyone we talk to at Gary White Insurance receives an up-to-date industry comparison of insurance company definitions.

WHAT ABOUT LONG TERM CARE INSURANCE?

Many people think that our provincial health plans have generous long-term care benefits.  What is not known is that a person must have income and assets below a certain level in order to qualify for accommodation in a long term care facility.  Further, many of these government subsidized facilities have waiting lists several years long.

Long Term Care Insurance is a relatively new form of insurance that is gaining in popularity as our population ages and the government continues to reduce medical services.  Long Term Care Insurance provides tax-free benefits when a person is unable to perform two or more of the normal activities of daily living.  It provides a daily benefit (e.g. $100 per day) to cover the cost of either having a registered nurse come to the policyholder’s home, or for the policyholder's stay in a nursing home.

Recent surveys indicate long term care costs average about $115 per day, or $42,000 per year.  The average length of time that care is required is 2.7 years.  With certain conditions, this period could be much longer. Consider that the number of Canadians age 80 and over will double in the next 20 years and triple in the next 40 years.  With demand growing, these costs are expecting to increase dramatically.  Have you included these in your financial plan?

Unfortunately, there are very few good Long Term Care insurance plans in today’s insurance marketplace.  However, having said that, there is one plan available today that is extremely good and it provides a Critical Illness benefit before the age of 70, and if no claims are paid out, it then provides a Critical Illness benefit PLUS a Long Term Care plan after age 70 at rates based on the person’s age when the policy was originally taken out.  NO OTHER PLAN HAS THIS FEATURE.

Benefits of Long Term Care Insurance:

• Protection in the event of a catastrophe;
• Logical addition to overall plan of risk protection;
• Allows the insured to maintain independence and dignity;
• Helps maintain control of the insured's life and estate;
• Reduces the insured's reliance on family members;
• Helps the insured afford the level and type of care wanted or needed;
• Premiums are easier to budget than long term care expenses.

Whether it’s Critical Illness or Long Term Care call 1-800-433-5307 or email info@garywhiteinsurance.com for your free, no obligations proposal.