The average lifespan for Canadians is gradually increasing. A healthy lifestyle and medical advancements have extended our longevity into the mid-80s. However, living longer can come at a price. In fact, between 30% and 45% of those over the age of 75 are living with a long-term disability. That could translate to high costs for extended health care.

Long-term care insurance may ease the financial load associated with providing care for yourself, or an elderly family member over an extended period of time. The concept is to purchase insurance that will pay a benefit to cover the cost of facility or in-home care. The benefit is designed to "bridge the gap" between what is covered by government programs and what additional care you might need or want. It allows you to maintain your quality of life and ensures that your family does not struggle to make ends meet while paying for these costly services. You also have the peace of mind knowing that your savings and investments will be preserved for you and your family.

Many people consider long-term care insurance to be a product to purchase after retirement. However this may not be the wisest course of action. The older you are the more expensive the premiums will be. And since this type of insurance is based on health, the best time to purchase is when you are young and healthy.

Long-term care insurance may not be a solution for everyone. It may seem expensive or may not be offered due to health concerns. However, for those who do qualify and can afford the premiums, long-term care insurance can provide reassurance that you will be taken care of with dignity, without worrying about the financial cost of care. Be sure to review your needs with a professional advisor who will assess your options and come up with a plan that is right for you. When the time comes, you will be relieved you did.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.