17 Dec Recover Your Long Term Care Costs
Will your family be affected by the costs of caring for an aging loved one?
Statistics Canada states over 350,000 Canadians 65 or older and 30% of those older than 85 will reside in long term care facilities. With increasing poor health and decreased return on investments, the fear of facing financial instability in your declining years is real.
How will this impact your family?
Caring for an aging parent or spouse takes its toll emotionally and financially. Adult children with families and job pressures of their own are often torn between their obligations to their parents, children and careers. This often results in three generations feeling the impact of this care.
Is it important to you to have control over your level of care?
- The cost of providing for long term care is on the rise
- While many Canadians assume that full-time care in a long term care facility will be fully paid by government health programs; this simply is not the case. In fact, only a small part (if at all) of the costs of a residential care facility will be paid by government health care programs.
- 28% of all Canadians over the age of 15 provide care to someone with long term health issues
- For the senior generation, the prospect of the failing health of a spouse puts both their retirement funds and their children’s or grandchildren’s inheritance at risk.
- Capital needed to provide $10,000 month benefit (care for both parents) for 10 years is $ 1,000,000 (if capital is invested at 4% after-tax)
Advantages of the Long Term Care Back to Back Strategy
- Shifts the financial risk of care to the insurance company
- Allows for a comfortable risk free retirement
- Preserves estate value for future generations
When is the best time to put this structure in place?
- Remember, the older the insured, the higher the cost so incorporate this into your retirement planning.
- Do it early while you are still insurable!
Please call me if you think your family would benefit from this strategy or use the social sharing buttons below to share this article with a friend or family member you think might benefit from this information.