Frequently Asked Questions

Why do I need long term care insurance coverage? How can the ACE Life Long Term Care Insurance Plan help me?

Long term care coverage can help give you independence and peace of mind. Under the ACE Life Long Term Care Insurance Plan, you can use the benefits for the best care options available to minimize the impact on your finances. The coverage helps preserve your assets for other uses including enjoying retirement living, leaving an inheritance for your loved ones, or ensuring a quality lifestyle. And, the benefits received may far exceed the premium costs for coverage or the long term care expenses you may need to pay.

Shouldn't I wait until I'm older to think about long term care?

Although the chance of needing long term care becomes higher as we age, long term care needs may become necessary at any age due to injuries or illness. Regardless of the stage of life you are in, you can benefit from long term care insurance protection. And, the longer you wait to buy coverage, the more expensive it is.

Does the ACE Life Long Term Care Insurance Plan cover care in a retirement home or seniors' residence?

Care provided to you in your independent residence, within a seniors' residence or retirement home, can be covered as home care if it is provided to you by an approved home health care agency or home care agency. The ACE Life Long Term Care Insurance Plan does not cover care in a long term care facility.

Would I be better off saving on my own to pay for long term care if I need it?

Some people don't have the discipline to set aside savings. And what if you need care before you've saved enough to pay for it? Instead, you can get lifetime protection for a fraction of what it would cost you to pay for the care on your own. This is especially true if you get coverage when you're younger. So, it makes more sense to protect yourself by purchasing long term care coverage right away.

How long will it take before I know if I am approved for long term care insurance?

The underwriting process generally takes approximately one month. This time may vary depending on your age and the complexity of your medical history.

If I apply for coverage and am accepted, when will my coverage become effective?

Your coverage will start the first of the month following the approval of your application.

The application mentions that ACE Life may need to obtain my medical records from my doctor. What kind of records would they need and why?

ACE Life may ask your doctor to complete an Attending Physician Statement (APS). This is a summary of your medical history based on records from your doctor. This helps determine your medical eligibility for coverage. Doctor's offices are used to providing this information to insurance companies.

The application form asks for the best time of day to call. Will an interview be conducted? Who does the interview and why is it done?

If you are under 70 years of age, a nurse may contact you and conduct a telephone interview. If you are age 70 years old or over, ACE Life will arrange a convenient time for a specially trained nurse or social worker to speak with you in person. The questions this person will ask are very basic and are necessary to get the best information about your health.

What is a Cognitive Impairment?

A cognitive impairment is defined as mental deterioration and loss of intellectual ability, evidenced by deterioration in memory, orientation and reasoning, which is measurable and results from demonstrable organic cause as diagnosed by a specialist. The degree of cognitive impairment must be sufficiently severe as to require continuous daily supervision.

Can my premiums change?

The premium you pay is based on your age at the time you apply for coverage and will not be changed just because you get older or experience a change in health. Premiums can only change if it is justified based on a review of claims experience of the program. Any change in premiums would be made for everyone with similar coverage and you can never be singled out for a rate increase.

How does the 90-day waiting (elimination) period work?

The waiting (elimination) period begins on the first documented day that you require assistance due to the loss of two or more ADLs or a cognitive impairment. The elimination period ends 90 calendar days later. Benefits become payable at the end of the elimination period as long as you continue to need assistance. Benefits continue until the lifetime maximum.

Who is the Care Coordinator?

The Care Coordinator is a registered nurse or social worker who has experience working with long term care recipients and is sensitive to their needs. The Care Coordinator works for an independent agency designated by ACE INA Life Insurance and:

• assesses your physical, cognitive, social and medical needs and works with you and your family to determine the specific services you may need and also arranges for the services;
• is available as a patient advocate who helps you coordinate your care needs;
• will develop a 'Plan of Care' and recommend quality providers in your area based on your specific situation; and
• will help you maximize the value of your long term care coverage, support you and your family, and help you locate quality providers of care.

What is a 'Plan of Care'?

A 'Plan of Care':

• specifies your long term care needs;
• specifies the services and providers most appropriate to meet those needs;
• indicates the costs, if any, of the services you may need; and
• is an ongoing plan and is updated by your Care Coordinator as your needs and circumstances change.

If I make a claim for benefits and I recover before depleting the lifetime maximum amount, what happens if I have another claim?

Benefits will be paid on the new claim as long as you have not depleted the lifetime maximum. You will have to satisfy the elimination period for each period of care unless it is considered recurring. A recurring period of care is two or more periods of care which are separated by less than six months and are of related causes.

Taxation?

There are no specific income tax laws for long term care insurance. The following recommendations are based on our assessment of current tax laws and the current Canada Revenue Agency interpretation. We recommend that you consult with your financial advisor or tax accountant about your individual situation.

Can I claim my premiums as a medical expense for income tax purposes?

No, the Long Term Care Insurance Plan is not considered a private health services plan and the premiums paid by an individual for coverage under the plan are not a qualifying medical expense.

Can I claim my long term care expenses as a medical expense for income tax purposes?

Yes, your actual medical expenses in excess of those reimbursed are eligible for the medical expense tax credit.

Will my benefits and reimbursements be taxable?

No, your cash benefits and reimbursements from the ACE Life Long Term Care Insurance Plans are not taxed because the policy is owned by and the benefit is payable to an individual.

More Questions? Contact Us!