The purpose of a long term care insurance policy is to provide you financial support during your old age for long term care requirements like assisted living or home care. However, these type of insurance policies have some disadvantages. Foremost among these is the possibility that you might not receive the insurance amount at all during your critical need. Even if you receive it, the amount might be much less than your expectation. This happens when the insurer informs that the basis of your insurance claim is not covered or partially covered in your policy terms and conditions. Another disadvantage here is that the insurer might considerably increase your premium amount with your increase in age.
There are some better alternatives to financially plan for your ill health during your old age. You might think of investing your money in an RRSP or a tax free savings account. When you do so, you are sure that you can utilize this money at critical times. For financially protecting yourself against major illnesses, you might consider taking a insurance policy of critical illness. These insurance policies can be claimed in the case of major illnesses and they have a much better history of paying their customers, compared to the long term care policies.