Workers can get ready for long-term care costs by putting money into long-term investments or by purchasing health insurance. Taking care of yourself as you reach your later years, however, doesn’t need to put you on the brink of insolvency.
There are many approaches you can use to cover a portion of the expenses. Read on to discover a few ways you could begin saving for your senior care:
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Consider Adult Day Care
Much like day care services provided for children, adult day care centres provide entertainment, activities, and services to those who attend. For seniors, one can expect to find recreational activities such as games and group outings, as well as classes and seminars in which they can learn new skills, such as art or cooking, or learn more about topics which interest them. These groups provide not only a source of entertainment and activity, but also allow seniors to meet new friends and escape loneliness.
Adult day centres also offer a respite for caregivers. While attending the day centre, seniors will receive meals, supervision, and some extent of care (varying between different centres) so that their regular caregiver(s) may rest or take time to care for themselves. Facilities will have trained staff nearby to handle any medical issues, especially for those with dementia or chronic illness.
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Apply for Veterans Services
Veterans who have served in qualified times of conflict, and also their partners or dependents, may be eligible to receive some government assistance through Veterans Affairs Canada. These allowances help veterans to pay for necessities as well as for long-term care.
Depending on one’s situation, governmental assistance can aid in providing financial support, as well as providing services to those struggling with illness or injury, disability, homelessness, and more. Special support is also offered to Indigenous and LGBTQ+ veterans. To learn more about these programs and services and to see what is available, visit the Veterans Affairs website (https://www.veterans.gc.ca/) or call them toll free at 1-866-522-2122.
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Add a Rider to a Current Life Insurance Policy
For those with an existing life insurance policy, one option is to add a rider that provides coverage for a longer period, or in case of injury or disability. These packages will vary between providers, so it is important to make sure you understand what is contained in the policy you are signing up for. Peruse information about your policy online, or contact your insurance broker for further details.
In many cases, this additional coverage will help to cover the costs of any future, unexpected illnesses or injuries and will help you to maintain your lifestyle and health through emergencies. Having an existing life insurance package with these benefits will make the transition to long-term care much smoother, both on your wallet and your mental wellbeing.
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Open a Health Savings Account (HSA)
As part of your individual or company health insurance package, you may have access to a Health Savings Account or HSA. This is an account into which you may deposit some of your pre-tax earnings, which may then be used throughout the year on certain health-related expenses, such as specialist visits, medical equipment, some prescriptions, and more. If the amount within the account is not used up within the year, the remainder rolls over for use in the next year.
HSAs can be very useful to anyone who is still bringing in income and has regular medical costs to consider, allowing them to more easily pay for their expenses. These accounts are targeted mainly to those with high-deductible health plans, though there are similar Flexible Savings Accounts (FSAs) for those who do not qualify. It is important to weigh your annual healthcare costs, as for some it may be more cost-effective to purchase health insurance.
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Make Use of Tax Credits
The Canadian government offers a wide variety of tax credits which may be claimed to reduce the amount of income tax paid, either by you or, in some cases, the person who lists you as a dependent. These can range from your Pension Income Amount (or Pension Income Splitting, to share your income with a partner) to Disability to the Public Transit Amount, for those who take advantage of public transportation, as well as several more.
For a full list of credits offered for seniors, visit the Canada Revenue Agency’s website or contact your income tax specialist. There are also several free tax clinics available across the country, where you can go for assistance on filing your taxes and to learn more about how certain tax credit can be applied in your situation. Click here to search for a clinic in your area.
For more from Holly Clark, visit her online at https://www.firstcare.ie/.
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