Long Term Care Insurance More Valuable Than Ever

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On October 8th 2009,  the Minister of Health announced new rates for residential chronic care, beginning in January, 2010. While they emphasized that some rates will go down,  those paying the higher rates will be paying close to 25% more. The new rate structure will ensure clients with the lowest incomes continue to pay the lowest rate in Canada for care.
Rates will now range from $29.40 up to $96.40 per day.  This is based on income, and no one who is eligible for nursing home  care and housing in B.C. will be paying more than their income. What the changes do is significantly increase the cost for care for those with higher incomes, lowering the government's portion. While the press release emphasizes 25% will pay less, it ignores the fact that 75% will now be paying more. Maximum rates will be capped at the full cost of $2,932 a month. This is up from the current rate of $74.30 a day or $2,259.95 a month.
British Columbians are lucky in a sense that the costs of care are still based only on income, not on  income plus assets, as happens in several provinces and in the U.S.  At present, the costs of  private residential retirement homes range from about $4500.00 per month up to over $7,000.00, based on  size of suites, location, services provided, and the market being targeted. These retirement residents are not nursing homes.
Long term care insurance can obviously form a valuable part of off-setting the cost of care. Obviously you need to include a discussion about covering the cost of long term care with your life benefits advisor.  Parksville Life Benefits Ltd. considers it an important part of any financial plan. If you have not spoke to us about it yet, please call to make an appointment.
This article was written and submitted by:
Ethel Vincent-Lambert  M.B.A.
Long Term Care Insurance Specialist
Life expectancy is not synonymous with Health expectancy