As Canadians enter retirement, one of the biggest financial concerns is how to cover the cost of long-term care. Whether it is assisted living, in-home nursing, or specialized medical care, these services can be expensive. Unfortunately, government programs only cover a portion of the costs, leaving retirees to pay significant amounts out-of-pocket.
This is where long-term care insurance (LTCI) becomes essential. It provides financial support for services not fully covered by public health insurance. The challenge for many retirees is finding affordable and comprehensive plans that fit within a fixed retirement income.
In this detailed guide, we explore the 10 best affordable long-term care insurance plans for retirees in Canada. We will break down what each plan offers, the costs, how to qualify, and what to consider before purchasing a policy.
Why Retirees in Canada Need Long-Term Care Insurance
Long-term care services can quickly drain retirement savings. According to industry estimates, the average cost of a private room in a nursing home in Canada ranges between $2,000 and $3,500 per month, while in-home care can cost over $25 per hour.
Here are the key reasons why retirees need LTCI:
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Rising healthcare costs: Provincial healthcare plans cover basic medical needs, but extended care services are often not included.
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Protecting retirement savings: LTCI ensures that savings are not depleted by medical expenses.
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Preserving family finances: It prevents adult children or other family members from having to shoulder the costs.
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Flexible care options: LTCI allows retirees to choose between in-home care, assisted living, or nursing home care.
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Peace of mind: Knowing that care will be covered reduces stress for retirees and their families.
What to Look for in Long-Term Care Insurance for Retirees in Canada
When evaluating policies, retirees should consider these key factors:
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Affordability: Premiums must be manageable within retirement budgets.
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Daily or monthly benefit amount: This determines how much coverage you will receive each day or month.
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Benefit period: How long the policy will pay benefits, such as 2 years, 5 years, or lifetime.
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Waiting period: The length of time before benefits begin after a claim is made.
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Inflation protection: Ensures your benefits keep pace with the rising cost of care.
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Eligibility requirements: Some plans require medical exams, while others offer simplified or guaranteed acceptance.
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Company reputation: Choose an insurer with strong financial ratings and good claims experience.
Summary Table: 10 Affordable Long-Term Care Insurance Plans for Retirees in Canada
| Insurance Company | Average Monthly Premium (Age 60–70) | Daily Benefit Amount | Benefit Period Options | Key Features |
|---|---|---|---|---|
| Sun Life Financial | $75–$150 | $100–$300 | 2–5 years, lifetime | Flexible coverage, inflation protection available |
| Manulife | $80–$160 | $125–$300 | 3–5 years, lifetime | Comprehensive in-home care and facility coverage |
| Canada Life | $70–$140 | $100–$250 | 2–5 years | Simplified underwriting, optional riders |
| Desjardins Insurance | $68–$135 | $100–$250 | 2–5 years | Competitive premiums, strong customer service |
| RBC Insurance | $75–$155 | $125–$300 | 2–5 years, lifetime | Non-smoker discounts, custom benefit amounts |
| iA Financial Group | $65–$140 | $100–$250 | 2–5 years | Flexible waiting period options |
| Equitable Life | $72–$145 | $125–$275 | 3–5 years | Cash benefit option, inflation riders available |
| Assumption Life | $65–$130 | $100–$225 | 2–4 years | Ideal for retirees with health conditions |
| BMO Insurance | $70–$140 | $100–$250 | 2–5 years | Affordable premiums, in-home care included |
| Wawanesa Life | $62–$125 | $100–$225 | 2–4 years | Simple application process, guaranteed renewable policies |
*Premiums and benefits vary by age, health status, and province.
Detailed Reviews: 10 Affordable Long-Term Care Insurance Plans in Canada
1. Sun Life Financial
Sun Life is one of Canada’s most popular insurers for retirees looking for long-term care coverage.
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Why it’s great: Sun Life offers flexible policies with optional inflation protection and riders that expand coverage.
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Coverage: Daily benefit amounts range from $100 to $300.
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Premiums: Around $75–$150 per month for retirees aged 60–70.
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Benefit period: Choose between 2–5 years or lifetime coverage.
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Additional benefits: Non-taxable benefits and comprehensive in-home care options.
Sun Life is a top choice for retirees who want a well-rounded policy with a strong reputation for paying claims.
2. Manulife
Manulife provides robust LTCI plans with several customization options.
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Coverage: Daily benefits of $125–$300 with in-home and facility-based care.
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Premiums: Around $80–$160 per month.
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Benefit period: Choose from 3 years, 5 years, or lifetime benefits.
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Key features: Optional inflation protection and simplified underwriting available for retirees in good health.
Manulife is ideal for retirees seeking comprehensive coverage with multiple care options.
3. Canada Life
Canada Life’s long-term care plans are known for their affordability and flexibility.
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Premiums: $70–$140 monthly for retirees aged 60–70.
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Coverage: Daily benefit amounts of $100–$250.
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Benefit period: 2–5 years.
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Features: Optional return-of-premium rider and simplified medical underwriting.
Canada Life is best suited for retirees who want strong coverage without a complicated application process.
4. Desjardins Insurance
Desjardins offers affordable plans with competitive benefits and strong customer service.
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Premiums: Around $68–$135 monthly.
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Coverage: Daily benefit amounts from $100–$250.
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Benefit period: 2–5 years.
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Features: Multiple waiting period options and inflation protection riders.
Desjardins is a good choice for retirees in Quebec and across Canada seeking affordable premiums.
5. RBC Insurance
RBC Insurance is a top-tier company with flexible coverage and strong financial ratings.
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Premiums: $75–$155 monthly.
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Coverage: Daily benefit amounts from $125–$300.
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Benefit period: Choose from 2 years, 5 years, or lifetime.
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Features: Discounts for non-smokers and optional benefit increase riders.
RBC Insurance is great for retirees who value stability and customizable coverage.
6. iA Financial Group
iA Financial Group offers simplified issue long-term care policies for retirees.
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Premiums: $65–$140 monthly.
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Coverage: Daily benefits between $100 and $250.
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Benefit period: 2–5 years.
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Features: Affordable premiums and flexible waiting periods from 30–180 days.
This plan is well-suited for retirees who prefer more control over their premium costs.
7. Equitable Life
Equitable Life is popular among retirees for its participating plans and cash benefit options.
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Premiums: $72–$145 monthly.
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Coverage: Daily benefit amounts of $125–$275.
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Benefit period: 3–5 years.
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Features: Optional inflation protection and dividend-eligible policies.
Equitable Life is ideal for retirees who want policies that can grow in value over time.
8. Assumption Life
Assumption Life specialises in simplified issue policies, making it easy for retirees with health issues to qualify.
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Premiums: $65–$130 monthly.
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Coverage: Daily benefit amounts from $100–$225.
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Benefit period: 2–4 years.
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Features: Fast approval and guaranteed renewable policies.
Assumption Life is a strong choice for retirees who have difficulty qualifying with other insurers.
9. BMO Insurance
BMO Insurance offers straightforward plans with affordable pricing.
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Premiums: $70–$140 monthly.
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Coverage: Daily benefit amounts from $100–$250.
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Benefit period: 2–5 years.
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Features: In-home care coverage and simplified applications.
BMO Insurance is ideal for retirees who want a trusted bank-backed insurer.
10. Wawanesa Life
Wawanesa Life is known for its competitive rates and simple policies.
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Premiums: $62–$125 monthly.
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Coverage: Daily benefit amounts of $100–$225.
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Benefit period: 2–4 years.
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Features: Easy application process and strong customer service.
Wawanesa Life is a great choice for retirees seeking reliable, affordable coverage.
Tips to Get the Best Long-Term Care Insurance Rates in Canada
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Apply early: Premiums increase significantly with age. Apply as soon as possible, ideally in your early 60s.
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Compare multiple quotes: Rates and benefits vary widely among insurers.
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Choose the right benefit amount: Avoid over-insuring, which can lead to unaffordable premiums.
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Consider shared care policies: These allow couples to share benefits, reducing costs.
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Ask about discounts: Non-smokers and couples often receive lower rates.
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Review waiting period options: A longer waiting period can reduce your premiums.
FAQs: Long-Term Care Insurance for Retirees in Canada
1. What is long-term care insurance?
It is a policy that helps cover the cost of services like nursing homes, assisted living, or in-home care when you cannot perform daily activities independently.
2. Is long-term care insurance worth it in Canada?
Yes, it protects your retirement savings from being drained by expensive care costs.
3. Can retirees over 70 qualify for long-term care insurance?
Yes, but premiums are higher, and some insurers may require medical exams.
4. Does provincial health insurance cover long-term care?
Only partially. Government programs cover basic medical care, but you must pay for additional services and private facilities.
5. Can I use LTCI for in-home care?
Yes, most policies cover in-home nursing and personal care, as well as facility-based care.
6. What is the average cost of long-term care in Canada?
Nursing home care can cost $2,000–$3,500 monthly, while in-home care averages $25–$40 per hour.
7. Are premiums tax-deductible in Canada?
In some cases, premiums may qualify as a medical expense tax credit. Consult a tax professional.
8. What happens if I never use my policy?
Some insurers offer return-of-premium riders that refund a portion of premiums if you never file a claim.
9. Can couples buy joint policies?
Yes, many insurers offer shared care plans that combine benefits for couples.
10. How do I know how much coverage I need?
Estimate the cost of care in your province and choose a daily benefit amount that matches potential expenses.
Conclusion
Long-term care insurance is an essential part of retirement planning in Canada. It ensures you can afford quality care without exhausting your savings or burdening family members.
The 10 affordable long-term care insurance plans reviewed in this guide offered by trusted companies like Sun Life, Manulife, Canada Life, and Wawanesa Life provide a wide range of options for retirees.
If you are approaching retirement or already retired, start comparing quotes now. Acting early will help you secure the lowest premiums and guarantee that you have the protection you need for the future.