Understanding The Difference Between Long-Term Care Insurance And Life Insurance

By October 13, 2016Life

ByMichelle MacDonald. As the population of seniors continues to grow by 225,000 each year in Canada, it’s no wonder the need for collective dwellings focused on special or long-term care is in such demand.

Statistics Canada reports that over 350,000, or 7.1 per cent of seniors aged 65 and over are currently living in long-term care facilities such as nursing homes, chronic care facilities and residences specifically for senior citizens. For seniors aged 85 and over, the number jumps substantially to 29.6 per cent.

Though there are B.C. government-subsidized facilities that can range from $19,000 to $25,000 per year, these spaces fill up fast leaving only the private long-term facilities available to those in need, which can easily cost upward of $40,000 per year.

According to Dawn Silzer, life insurance specialist at Envision Financial, a division of First West Credit Union, the benefit of long-term care insurance might actually outweigh that of life insurance.

“Given we are now living longer than ever before, it’s even more important that families understand the difference between long-term care insurance and life insurance,” says Silzer. “The costs associated with long-term care can take a considerable chunk out of retirement savings resulting in little or no inheritance to pass on to their families.”

“Planning for the future is not a one size fits all solution,” says Silzer. “Before making any decisions, I would suggest sitting down with a life insurance expert, reviewing your financial plan, and seeing what mix of insurance makes sense for your situation.”

Silzer is also quick to advise that long-term care planning isn’t necessarily available just for you.

“With many families balancing caregiving needs for their own children and their aging parents, it’s not uncommon for these individuals to purchase long term care insurance for their aging parents,” says Silzer. “Knowing that you have plans in place to take care of your parents can take a huge weight off your shoulders as your parents grow older and are in need of more care than you alone can provide.”

On the flip-side, Silzer also advises that you look into the future and proactively protect your own children from facing a similar situation in the future years by purchasing this coverage for yourself.


About Envision Financial
Envision Financial is a premier provider of banking, investment and insurance services for residents and businesses throughout the Fraser Valley, Lower Mainland and Kitimat regions. As a division of First West Credit Union, B.C.’s third-largest credit union with 54 branches and 38 insurance offices throughout the province, Envision Financial brings innovative products, an extensive branch network and local decision making to the banking experience. Visit envisionfinancial.ca for more information.

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