The Long Term Care (LTC) market is ever changing. News this past week shows another carrier pulling from the business. Desjardins has announced they will no longer be offering LTC as of June 15th 2018 (see article above). This decision falls in line with carriers such as RBC who withdrew their LTC product on June 23, 2012 and Manulife Insurance on November 30, 2017. The reality of these changes put Canadians and their retirement savings at risk.
Statistics show that Long Term Care costs and availability are already a challenge for most aging Canadians. In June 2017 a private room, long-stay bed in the public sector cost on average $2,599.11/month and at the same time there are $32,046 people waiting for one of these beds. This leaves many individuals with no other option other than to apply to the private sector, where a bed can cost on average $5,000/month. Many Canadians cannot afford this monthly bill without the assistance of a LTC policy or support from family.
These changes bring to light an unsettling future that Canadians face, in order to ensure you have the right plans in place for your retirement considering the purchase of an LTC plan is of utmost importance. Taking advantage of this product while it is still available is key - the countdown is officially on, June 15, 2018 is just around the corner - reach out to us to review your options!
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