Exploring Long-Term Care Insurance in Canada: Essay Sample

Introduction

We have already had a brief conversation about the new product long-term care insurance (LTCI) I heard from a conference in February. I believe it had provided you with a general knowledge of this product. Our focus with this product will be to meet the increasing demand for long-term insured care in Canada. As you might have known by now, the number of Canadian patients is slowly overpowering the available long-term care facilities, and this needs to be fixed through our insurance service. This memo serves as a means to give you a deeper understanding of LTCI and how much profit it can bring to our company.

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Long-term Care Insurance allows persons to access long term care services in the event that they lack the financial ability to clear healthcare bills. The policy is applicable when the inability to pay for the care is due to age-related illness, physical illness, disability, or cognitive impairment. The insured persons are those who opt to use LTCI. The age requirement for eligibility for LTCI is from 50 years and above. The following are the details of how this works.

Coverage

LTCI covers home and facility care options for the insured. Home care refers to care service provision done at the person's home. Facility care refers to services provided at a care facility outside the person's home, like nursing homes or community-based settings.

LTCI ensures activities of assisted daily living (ADL) including but not limited to daily care such as toileting, eating, bathing, dressing, etc. The insurance also covers therapy sessions for the insured either at home or at a care facility.

Rising Demand for Long-Term Care Insurance

High Level of Care with No Burden to Families: It is approximated that by 2024, the Canadian population aged 65 and above will increase by 20 percent (Garner et al., 2018). The baby boomers are getting older. There are over 5.9 million senior citizens in Canada, which is more than the number of long term care bed facilities (Grenier, 2017). This factor indicates that the demand for long term care facilities will increase as per the current projections. When this happens, the cost of care will also increase. While the public health system covers a portion of this cost, the numbers will create a burden to the Canadian care system making care cost to be expensive. The price of staying at a care facility By contrast, our long-term care insurance seems to be a much more economical choice; in fact, an optimal choice for the most family as the premium is only approximately $2000 per year. Therefore, I believe long-term care insurance will soon be embraced by many Canadians.

Increasing Market Size: As we all know by now, the aging problem has resulted in the population getting older at a faster rate. Aging is a problem because the older a person is, the expensive it becomes when paying for insurance premiums as they become more vulnerable to other complications. At present, 51 percent of the 6.5 million senior Canadian citizens are baby boomers ("Canada's population estimates: Age and sex," 2019). Also, Canada currently has 10,000 centenarians with the vast majority being women due to the latter's longer life expectancy. A market survey has shown that about 74% of Canadians are not financially ready to pay for their needs in the long-term. According to predictions, by the year 2036, there will be closely 1 million Canadians suffering from dementia. Aging will bring a series of complications to people's lives especially the elderly resulting in higher expenditure on care services. So, as all these data showed, long-term care insurance will be one of the most popular products of our company and can earn a potential colossal profit.

Highly Efficient and Quality Care Provided: Long-term care beds have become minimal due to the increasing number of old people, male and female in Canada. In 2014, 26,495 people were on the wait-list in Ontario, equivalent to about one-third the number of available long-term care beds. The life expectancy for both Canadian males and females is 83 years meaning this group requires quality care services. However, this number will only be more significant today. Waiting for a bed to get nursing care takes time, which might not be there for serious chronic-illness patients. In 2016, the number of elderly patients in acute care beds was high because they could not find space in long-term care facilities (Gibbard, 2018). One of the most advantageous features of Long-term care insurance is that it can provide home nursing where the patient can get efficient and high-quality care, which can bring a positive effect on society.

I hope you have been convinced that this product can bring tremendous benefits to our company as it perfectly follows the social trend and the demographic projections. I will soon set up a meeting in the schedule so that we can talk about how this should go, and provide a detailed plan for this project. I will also prepare a detailed business plan for this product, which will be viewable in the meeting. Should you have any concerns or problems, kindly let me know. My phone number is X, and my email address is Y.

References

Canada's population estimates: Age and sex. Www150.statcan.gc.ca. (2019). Retrieved 21 March 2020, from https://www150.statcan.gc.ca/n1/daily-quotidien/190930/dq190930a-eng.htm.

Garner, R., Tanuseputro, P., Manuel, D., & Sanmartin, C. (2018). Transitions to long-term and residential care among older Canadians. Www150.statcan.gc.ca. Retrieved 21 March 2020, from https://www150.statcan.gc.ca/n1/pub/82-003-x/2018005/article/54966-eng.htm.

Gibbard, R. (2018). Sizing up the demand for long-term care in Canada (pp. 1-48). Ottawa: The Conference Board of Canada.

Grenier, E. (2017). Seniors now outnumber children in Canada; census figures show | CBC News. CBC. Retrieved 21 March 2020, from https://www.cbc.ca/news/politics/2016-census-age-gender-1.4095360.