Long-term care insurance pays toward the ongoing personal care many people need late in life, which provincial health plans largely leave to families. This page weighs whether the coverage is worth buying in Canada, where it has become hard to find. It is part of the health and life coverage guides; for the other costs provincial plans don’t cover, see health insurance in Canada, and for coverage options after 60, life insurance for seniors.
The Core Problem Long-Term Care Insurance Solves
Canada’s public health system covers medically necessary hospital and physician care. It does not fully cover home care, and ongoing personal care (help bathing, dressing, eating, or managing medications at home or in a facility) is partly paid by the person receiving it.
What provinces charge in a publicly funded long-term care home:
| Province | What residents pay |
|---|---|
| Ontario | A monthly co-payment set by the province: $2,129.17 basic, $2,567.17 semi-private, $3,041.97 private (from July 1, 2026); a rate reduction is available for low-income residents in basic rooms |
| British Columbia | Up to 80% of after-tax income, subject to a minimum and maximum monthly rate |
| Alberta | An accommodation charge capped by the province: up to $71.85 a day for a shared room and $83.05 for a private room (from August 1, 2026); health care services are publicly funded |
Care outside a publicly funded bed, such as a retirement residence or private home care, is paid privately and can cost much more, which is the gap long-term care insurance is meant to fill.
What Long-Term Care Insurance Pays
Canadian long-term care policies generally pay a regular benefit when you meet the policy’s definition of needing care:
| Trigger type | What it usually means |
|---|---|
| Activities of daily living | Needing help with a set number of activities such as bathing, dressing, eating, toileting, moving around and continence |
| Cognitive impairment | A condition such as Alzheimer’s disease or another dementia |
The exact definitions, waiting period and benefit period are set in each policy.
Features to compare
| Feature | What to check |
|---|---|
| Benefit amount | The daily, weekly or monthly amount paid |
| Waiting period | How long you must need care before benefits start |
| Benefit period | How long benefits can be paid, from a set number of years to lifetime |
| Inflation protection | Whether the benefit increases over time |
| Return of premium | Whether any premiums are refunded if you never claim |
The Availability Problem in Canada
Most large Canadian insurers have stopped selling new individual long-term care policies. When Manulife left the market, it cited limited market acceptance and new federal laws restricting insurers’ access to medical information (the genetic non-discrimination law), and said policies already in force were not affected, according to trade publication Insurance Portal. Insurance Portal also reported that the last reinsurer backing these risks in Canada, Munich Re, left in 2017.
| Insurer | Status for new buyers (as reported by Insurance Portal) |
|---|---|
| Manulife | Stopped selling new individual long-term care policies (LivingCare) on November 30, 2017 |
| Sun Life | Discontinued Sun Long Term Care Insurance on June 14, 2021; Sun Retirement Health Assist stayed open for new sales at that time |
| RBC Insurance | Stopped selling new long-term care policies in 2012 |
Anyone shopping for a new policy today should expect few options and confirm with a broker which products are currently open.
Who Likely Benefits vs. Who Likely Doesn’t
Long-term care insurance is more likely worth it if:
| Situation | Why it matters |
|---|---|
| You have assets to protect but not enough to self-insure comfortably | A long stay in private care could consume savings |
| No family caregiver available | No adult children or partner able to provide unpaid care |
| Family history of dementia or prolonged care needs | A higher chance you will claim |
| You value staying in your own home | Benefits can help pay for home care that provincial programs don’t fully cover |
Long-term care insurance is less likely worth it if:
| Situation | Why |
|---|---|
| Very high net worth | You can reasonably self-insure the risk |
| Low income and few assets | Publicly funded care is income-tested, and premiums strain the budget |
| Already older or in poor health | Premiums are higher and health underwriting is harder |
| Strong family caregiver network | Reduces paid care needed |
Alternatives to Long-Term Care Insurance
Since individual long-term care insurance is hard to get, Canadians often use these alternatives:
| Alternative | How it works |
|---|---|
| Critical illness insurance | Pays a lump sum on diagnosis of a covered illness; can be directed toward care costs |
| Whole life cash value | Can be withdrawn or borrowed against; the amount above the policy’s adjusted cost basis is taxable (a partial withdrawal uses only a proportional share of that basis) |
| Self-insurance via investments | TFSA or non-registered accounts earmarked for future care |
| Home equity | HELOC or reverse mortgage to fund care costs |
| Publicly funded care | Long-term care homes with province-set charges, reduced or income-based for lower-income residents |
Provincial Government Support: What You Can Expect
| Province | Notes |
|---|---|
| Ontario | Home care through Ontario Health atHome; long-term care homes with a province-set co-payment and a rate reduction program for low-income residents |
| British Columbia | Long-term care with a client rate of up to 80% of after-tax income |
| Alberta | Continuing care homes with an accommodation charge capped by the province |
| Quebec | CHSLD residents pay a monthly contribution set by the government and based on their ability to pay |
Bottom Line: Is It Worth It?
| Verdict | For whom |
|---|---|
| Worth pricing, if a policy is available | People with moderate assets to protect, no family caregiver and a family history of care needs, who can still qualify |
| Maybe | Anyone who can find an open product: compare premiums with realistic care cost scenarios |
| Likely no | People who can self-insure, people with few assets who would rely on publicly funded care, and people who can no longer qualify |
For most Canadians the practical takeaway is that standalone individual long-term care insurance is no longer widely sold: Manulife and Sun Life have both closed their main products to new buyers. Self-insuring through savings, critical illness insurance and home equity are the realistic alternatives covered above.
Related Articles
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- Government of Alberta: Continuing care – Resident accommodation charges | Alberta.ca
- Government of British Columbia: Long-Term Care Services
- Government of Ontario: Paying for long-term care
- insurance-portal.ca: Sun Life drops one of its Long Term Care products - Insurance Portal
- insurance-portal.ca: Manulife exits the Long Term Care insurance market - Insurance Portal