Providing care to a loved one who is elderly or ill can change your life. Based on statistics from 2018, one in four Canadians over the age of 15, an estimated 7.8 million people, provided care to a friend or family member with a long-term health issues, mental or physical disabilities, or problems with aging.
It’s essential to be prepared for the many changes that occur when you take on the role of a caregiver for a family member. And while it may not be the first thing you think about when it comes to being a caregiver, life insurance plays a vital role in making sure your loved one has adequate care and support.
Why It’s So Important for Caregivers to Have Life Insurance
You may think you have plenty of time to worry about a life insurance policy, especially if you are young and healthy. However, life insurance protects you, even in the worst-case-scenario, which most people expect, will never happen to them. As the primary caregiver for your loved one, you are putting them at great risk if something happened to you. They may be forced to make significant changes in their lifestyle, which is a situation that you very likely didn’t intend on leaving them in.
While others may be qualified to provide care to your family members, most immediate family are irreplaceable. You are the one they turn to when they need assistance and protection. You are the one who understands their routine and everything about their condition. And you are the person who is there for them, around the clock, taking care of all the little things that brighten their days.
If you suddenly passed away, or were otherwise unable to continue caring for them, you would want to ensure they would still receive the best possible care. To make this possible, you will need to guarantee plenty of funds are available to support your loved one.
How Can Life Insurance Protect Your Loved One’s Future?
By purchasing a life insurance policy, you ensure your family member receives the cash payout from your life insurance policy, known as the death benefit. This money would help take care of the costs you may cover now, such as:
- Daily expenses such as for food and household supplies.
- Utility bills.
- Mortgage or rent.
- The cost to move to an assisted living facility.
- Money used to search for a new care provider.
- Legal fees for the management of your estate or your loved one’s guardianship.
- Emergency funds.
By purchasing a life insurance policy, you can ensure they continue to receive the same level of care and support from another provider if you pass away.
The Need for Long-Term Care
The number of seniors, and people who require long-term care, are growing and expected to double within the next 20 to 30 years. In Canada, long term care is necessary for the elderly and disabled who need 24-hour care and daily support services, for any physical or mental conditions.
Generally, long-term care is the best solution for those who require constant monitoring and supervision from a nurse or other medical professional. They are unable to receive this level of care at home. Individuals with Alzheimer’s or dementia are among those who require a certain level of ongoing care and support.
In many cities across Canada, there are long waiting lists for patients to receive long-term care. These lists can go on for months, or even years. While they wait, some individuals must be placed in an assisted living or memory care facility. For some, long-term care is provided at the same retirement community where they live. However, as studies suggest, this care comes at a cost upwards of $25,000 per year for government assisted facilities, with private care costing an average of $200,000 per year!
Long-Term Care Planning with Life Insurance
There are two things to consider when you are looking for a life insurance policy:
- First, you want to make sure you have enough coverage to support your family member when you are gone. With the right amount of coverage, your loved one will not be left with financial burdens, such as funeral or burial expenses, during an already troubling time.
- Second, you have to consider how your loved one will be cared for, if you are no longer around.
If there is another person willing to take over the job, you will need to factor in the costs of them caring for your loved one. It is vital to get the right amount of life insurance coverage to supplement the loss of income the new caregiver may endure once they take over the role.
It is also essential to consider how much compensation they will receive, even if they do not ask to be paid. Being a full-time care provider is more work than most people realize. Many people volunteer to be caregivers for a family member without realizing that it is not selfish or wrong to ask for compensation for their time.
You will also need to consider that the new care provider may not be able to provide long-term care. Or, you may be faced with the decision to place your loved one in a nursing home or assisted living facility because you can’t find anyone else to step in as your permanent replacement. If that occurs, your death benefit will help cover the costs for transitioning to a facility or hiring a full-time home health care worker.
Learn More About Why Caregivers Need Life Insurance
Choosing the right life insurance policy will give you peace of mind, knowing your loved one will continue to receive the same level of care and support you provided them, even if you are no longer with them.
Our Hometown Life Insurance team of licensed professionals are happy to assist you with any questions you may have about protecting yourself and your family. We provide guidance and service to our clients that have unique needs for life insurance, so you don’t have to find and compare coverages on your own. Without life insurance, you may be leaving the people you love and care for, in a vulnerable position. Plan ahead to ensure that their physical and financial needs are covered, so they can continue to receive the proper care and support.
