Personal Life & Health:
Long Term Care Insurance
Long Term Care Insurance protects you and your family in the event that you become unable to care for yourself due to injury, sickness, aging, or deteriorating mental abilities, and covers the cost of care over a long term period of time.
Why do I need Long Term Care Insurance?
Long Term Care Insurance allows you to choose the type of care you want without placing any financial burden on your loved ones. If you have Long Term Care Insurance, you won’t need to exhaust your savings, investments, and assets to pay for your care.
What do I receive?
Long Term Care services can be provided at home, through adult day care, in a retirement home, assisted-living setting, or long term care facility. These services can include homemaking services, nursing care, personal care, rehabilitation and therapy, and supervision.
Additional protection and flexibility is available through Long Term Care Insurance plans to better suit your needs:
- Premium Guarantee – Premiums will not change for five years upon the policy’s issue date. Premiums may increase afterward, however.
- Waiver of Premium – You will not have to pay your premiums while receiving your benefits.
- Spousal Waiver of Premium Benefit – If your spouse is also covered under a long term care insurance policy, your premiums may be waived under certain circumstances.
- Withdrawable Premium Fund – Extra premiums paid are deposited into a fund, much like a bank account that earns interest, and if you miss a premium payment, money can be withdrawn from the account.
- Extended Term Insurance Provision – If you miss a premium payment and there are insufficient funds in your withdrawable premium fund, your coverage may still continue for a limited time depending on certain circumstances.
What type of coverage is best for me?
- Comprehensive Benefits provides income benefits if you become physically dependent, no matter where you live.
- Facility Care Benefits provides income benefits if you become physically dependent and receive care in a long term care facility.
Typically, you would purchase only one of the plans, not both.
Will I be taxed?
While there are no specific income tax laws for Long Term Care Insurance, based on current tax laws, if the policy is owned by and the benefit is payable to an individual, income paid from Long Term Care Insurance should not be taxed.
What happens if I die without making a claim?
You can choose to include a return of premium on death benefit, meaning that a portion of your premiums will go to your estate.
Life Insurance, Critical Illness Insurance, Long Term Care Insurance: issued by Sun Life Assurance Company of Canada