Top 3 Financial Questions to Ask When Planning Long-Term Care

Planning for long-term care (LTC) involves more than choosing the right residence—it’s also about understanding the financial commitment. Families are often surprised by the costs involved and how funding works. Asking the right questions can help you plan effectively and avoid financial stress down the road. Here are three essential questions to guide your long-term care planning.

1. What Are the Costs for Long-Term Care in My Province?

LTC costs can vary widely depending on where you live in Canada. For example, in Ontario, the government subsidizes a portion of the care costs, but families are responsible for accommodation fees. These fees differ based on room type (private, semi-private, or basic/shared). Find more information about LTC in Ontario here.

Why this matters:
Knowing these costs upfront helps you assess whether your loved one’s income or savings will cover the expenses or if additional financial planning is needed.

Tip: Research provincial funding models and subsidies. Some provinces may offer financial assistance based on income, while others might have different cost structures for private-pay LTC homes.

2. What Funding or Financial Assistance Is Available?

Each province has its own programs to help offset LTC costs. For instance:

• Ontario: The government subsidizes care costs, but accommodation fees are income-based for residents in basic rooms.
• Quebec: LTC homes (CHSLDs) may have different rules for subsidies and private-pay options.

Why this matters:
Understanding what assistance is available ensures you don’t leave money on the table and helps you plan for any gaps in coverage.

Tip: Speak with a financial advisor or eldercare expert to explore additional options, such as tax credits or government grants.

3. How Can We Financially Plan for Interim Care Options?

LTC waitlists can be long, and families often need to consider interim care options, such as retirement homes or home care services, while waiting for placement. These services are typically private-pay and can add significant costs to your overall plan. Your loved one may be able to access some subsidized home care through Ontario Health at Home, though they may not be able to cover all health care needs. Every situation is unique.

Why this matters:
Interim care can bridge the gap in support, but failing to account for these costs may strain your family’s finances. Proactive planning ensures your loved one’s care needs are met while staying within budget.

Tip: Explore retirement residences with an advisory service, so that they can help you identify any risk factors, and stick within your budget. Additionally, research home care agencies to compare costs and services, and build these into your financial plan as part of the overall eldercare strategy.

Final Thoughts

Planning for long-term care is about more than budgeting for the future—it’s about being prepared for the in-between stages as well. By understanding costs, funding options, and interim care solutions, you can create a comprehensive plan that works for your family.

Need help navigating the financial and logistical aspects of care?
Tea & Toast’s Eldercare Strategy Session offers personalized advice to guide you through planning for long-term care and interim options like home care or retirement homes.

Book your session today. Let us help you prepare with confidence.

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