Updated: April 2025  |  bremo.io financial guides

Long-Term Care Insurance in Canada 2025

Long-term care (LTC) insurance pays for the costs of care when you can no longer care for yourself due to age, disability, or cognitive decline. In Canada, provincial programs cover some LTC costs — but not all. Private LTC insurance can bridge the gap, especially for those who want private-pay facilities or wish to protect their estate.

What Is Long-Term Care?

Long-term care refers to assistance with Activities of Daily Living (ADLs) — bathing, dressing, eating, toileting, transferring, and continence. It also includes supervision for cognitive conditions like dementia and Alzheimer's. Care can be provided at home (home care) or in a care facility (retirement home, long-term care home).

What Does LTC Insurance Cover?

LTC insurance typically provides a daily or monthly benefit when you meet the claim trigger — usually the inability to perform 2 or more ADLs, or having a cognitive impairment. Benefits can be used for:

• Home care services (personal support workers, nursing)
• Private long-term care facility costs above the government subsidy
• Retirement home/assisted living costs
• Adult day programs

What Does Government Cover in Canada?

Provinces fund publicly subsidized long-term care beds in care homes. The cost to residents is set at a maximum of approximately 70-80% of after-tax income (depending on province). For example, a senior with $2,000/month in income would pay around $1,400-$1,600/month toward their care. The government subsidizes the remaining cost, which can be $6,000-$12,000/month depending on the facility.

However, wait times for subsidized beds can be long. Private-pay beds in preferred facilities often cost $4,000-$8,000/month — entirely out of pocket unless you have LTC insurance.

How Much Does LTC Insurance Cost?

Premiums depend on your age, health, and the benefit amount you choose. Approximate annual premiums:

• Age 50, $100/day benefit: $1,500-$2,500/year
• Age 60, $100/day benefit: $2,500-$4,500/year
• Age 70, $100/day benefit: $5,000-$9,000+/year (if still insurable)

Should You Buy LTC Insurance?

LTC insurance makes sense in specific situations:

• You have significant assets you want to protect from care costs
• You strongly prefer private-pay facilities if you ever need care
• You have family history of dementia or conditions requiring long care episodes
• You purchase in your early-to-mid 50s when premiums are lower and health is better

It may not make sense if:

• You have significant assets and can self-insure (portfolio of $2M+)
• You have very limited savings and would rely on provincial subsidized care
• Your health makes premiums unaffordable or you are uninsurable

Alternatives to LTC Insurance

• Self-insuring: Building a dedicated care reserve in a TFSA or non-registered account
• Hybrid life/LTC policies: Permanent life insurance with an LTC rider — if you don't use the LTC benefit, death benefit is paid
• Critical illness insurance: Lump-sum payment on diagnosis of covered conditions; can fund care needs
• Home equity: Reverse mortgage or home sale to fund care when needed