How Much Does Long-Term Care Cost in Canada on Average?

Between $1,000 and $6,000 per month for 24-hour care in assisted living facilities, and $10 to $200 per hour for home care or personal nursing services.

Does Long-Term Care Insurance Cover Assisted Living Costs?

Yes. This type of insurance provides regular benefit payments that can be used to cover assisted living expenses in Canada.

What Is the Difference Between Long-Term Care Insurance and Disability Insurance?

Long-Term Care Insurance provides benefits when a person needs assistance with daily living activities or suffers from cognitive impairment. Disability Insurance is activated when a person becomes unable to work and replaces a portion of their income.

What Is the Difference Between Long-Term Care Insurance and Critical Illness Insurance?

Long-Term Care Insurance pays benefits based on the inability to perform daily living activities or cognitive decline, regardless of a specific diagnosis. Critical Illness Insurance provides a tax-free lump-sum payment upon the diagnosis of a defined serious illness, such as cancer or a heart attack.

Are Long-Term Care Insurance Premiums Tax-Deductible in Canada?

No. Long-Term Care Insurance premiums are generally not tax-deductible in Canada. However, in certain cases, policyholders may be eligible for specific tax benefits.

What Happens If I Contribute More Than the Allowed Limit?

Any excess contribution is subject to a 1% monthly tax until it is reduced or withdrawn through an eligible withdrawal.

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Long-Term Care Insurance

Coverage for specialized long-term care

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Why Do We Need Long-Term Care Insurance?
As we age, daily activities such as bathing, dressing, or preparing meals can become more difficult. Physical and cognitive changes are a natural part of life. Long-term care insurance helps you prepare for the costs associated with this stage, easing the financial burden of care for you and your family.

What Is Long-Term Care Insurance (LTCI)?
This type of insurance is designed to cover the costs of medical care or personal assistance—such as rehabilitation, nursing, or help with daily activities—when you can no longer manage them on your own.

It provides financial support for services such as:

Nursing care, therapy, and rehabilitation
Personal assistance with dressing, eating, and bathing
Household help, including cleaning, cooking, and laundry
In-home or facility-based personal care

How LTCI Works

This insurance is offered in two main models:

Reimbursement model: The insurance reimburses eligible care expenses up to a specified limit.
Fixed monthly benefit: The insurance provides a fixed monthly payment for a defined period (e.g., 2 years).

In most plans, benefits begin when you are unable to perform at least two activities of daily living (such as bathing, eating, etc.).

Many insurance plans include a waiting (or elimination) period, typically ranging from 30 to 90 days—meaning payments begin after this period has passed.

Benefits paid in Canada are generally tax-free.

Who Needs Long-Term Care Insurance the Most?

Individuals aged 45 to 71 who are planning for or already in retirement
Those concerned about rising care costs in the future
People who want to ease the financial and emotional burden of care on their children or caregivers
Anyone who wants the freedom to choose the type and location of their care — whether at home, a family residence, a nursing home, or a specialized care facility

Why Is LTCI Important in Canada?

The cost of long-term care in Canada is extremely high. For example, staying in a private facility can range from $6,000 to $15,000 per month, while in-home care services typically cost $25 to $75 per hour. These figures represent only a portion of the total expenses that may arise.