Window Closing On Long Term Care Insurance @ Sun Life
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Periodically, INTEGRIS features articles from individuals who provide insights into financial matters. This week, we have a time-sensitive article about Long Term Care Insurance, something that isn’t always well-known or understood. This particular article is time-sensitive since it speaks of a June 24thcut-off date to acquire a ‘grandfathered’ policy. The views of the article below are not necessarily those of INTEGRIS and any questions should be addressed to the author, Ms. Robyn H. Latchman, CFP, CLU, EPC.
Everyone knows that Long Term Disability (“LTD”) insurance only provides income replacement until age 65. But needs, especially non-OHIP covered hospital care, certain medicines, and personal service workers don’t stop at 65.
While accumulated wealth in PPPs, RRSPs, RRIFs and other savings accounts can help cover some of these costs, would it be great if some of those needs were covered by insurance?
There is an answer: long term care insurance, but unfortunately, the market for good policies is shrinking.
On June 24, 2021, Sun Life will be changing the terms of its Long Term Care coverage to make it much harder to claim the benefits of the policy.
Grandfathered policies subscribed prior to June 24, 2021, will be honoured with preferential terms and conditions.
Some of this include:
- 90 day waiting period
- Unlimited benefits paid to policy owner directly tax-free
- Maximum guaranteed 25 year payment period
- $9,200.00 of initial monthly benefit tax-free, Inflation protection increase of 2% on each policy anniversary date
- Return of premium at death benefit
- Spousal waiver of premium
- Palliative care
By way of example, a 50 year old non-smoker or smoker combined rates for a male would pay a monthly premium of $511.12
The grand-fathered policy would provide this coverage:
- 90 day waiting period
- Unlimited benefits paid to policy owner directly tax free
- Maximum guaranteed 25 year payment period
- $9,200.00 of initial monthly benefit tax free, Inflation protection increase of 2% on each policy anniversary date
- Palliative care
Since this type of insurance is under-developed in Canada, those who would like more protection should contact me at:
Robyn Latchman
416-879-6974
robyn@latchmaninsurance.com