I’m 60, married and thinking about long-term care coverage before I hit retirement — is it too late to get the best rates?

The short answer: she’s asking exactly the right question at exactly the right time.

What does LTC actually cost in Canada?

The costs vary significantly by province and the level of care you need, but they’re consistently higher than most Canadians expect. According to recent estimates, typical annual LTC costs in Canada can range from $25,000 to more than $200,000, depending on the type of facility and province:

• Government-subsidized LTC home beds: $1,300 to $3,400 a month
• Private long-term care facilities: more than $6,000 a month, with some exceeding $15,000 monthly
• Private 24/7 professional in-home care: up to $200,000 a year
• Assisted living in a private facility: $40,000 to $100,000 yearly

In Ontario, as of July 1, 2026, the government-set co-payment rate for a basic room in an LTC home is $2,129.17 every month, with semi-private rooms at $2,567.17 and private rooms at $3,041.97. For comparison, the standard charge in Nova Scotia for a nursing home is $114 a day as of March 1, 2026.

But here’s the key difference: While provinces do subsidize a significant portion of LTC home costs — approximately 78.4% of costs are covered by provincial, territorial and municipal funding — the remaining 21.6% is paid by residents out of pocket or through private insurance. And for Canadians who need care in a private retirement home, or want home care services beyond what their provincial plan covers, the funding gap can be substantially larger.

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Doesn’t Canada's health care system cover this?

The most common — and most costly — misconception in Canadian retirement planning is that universal health care covers it.

Canada’s health care system covers medically necessary hospital and physician services under the Canada Health Act. But long-term care isn’t an insured service under that federal legislation. Provinces do fund a portion of long-term care, but access to subsidized beds typically requires a formal health-needs assessment, and wait times for publicly funded beds can stretch for years in many communities.

Canadian provinces don't generally require individuals to spend down their assets before they can receive provincial assistance with long-term care costs. Instead, most provinces set a standard co-payment rate and reserve subsidies for residents below a fairly low income threshold — in Ontario, for instance, that cutoff sits around $27,000 a year. With $600,000 in registered savings, Susan's retirement income would almost certainly clear that bar in any province, meaning she'd pay the standard rate rather than qualify for help. Without a plan, those out-of-pocket costs could still add up fast for her.

Is buying a long-term care policy before retirement a good idea?

Susan is smart to think about this now, because timing is everything when it comes to LTC insurance in Canada.

The Canadian LTC insurance market is notably small, with limited providers and less competition — a reality that pushes premiums higher and makes eligibility more restrictive. Fewer than 2% of Canadians currently hold an LTC insurance policy, and nearly 74% have no financial plan at all to cover these costs, according to a Leger Marketing survey commissioned by the Canadian Life and Health Insurance Association (CLHIA), an industry group representing 99% of Canada’s life and health insurers.

The math on waiting is unforgiving. The publication Insurance Business notes that annual LTC costs for a private room ranged from $800 (New Brunswick) to $6,700 (Québec) montly. Most financial advisers recommend considering LTC insurance between ages 45 and 60, before health conditions can disqualify you or drive premiums up.

Whether it makes sense for Susan depends on her assets and her risk tolerance. With $600,000 in RRSPs and TFSAs, she has enough to live comfortably in retirement — but not enough to absorb years of private-facility costs without draining the nest egg she and her husband depend on. That makes insurance coverage worth a serious look.

Alternatives to long-term care insurance

LTC insurance isn’t the only option. If Susan decides the premiums are too high — or if a health condition makes her ineligible for a standalone policy — there are several alternatives worth exploring.

• Hybrid life insurance/LTC policies: These combine a death benefit with the ability to draw on LTC benefits if needed. They address the common concern about paying for coverage you may never use — if care isn’t required, the death benefit goes to your beneficiaries. Several Canadian insurers offer these products.
• Annuity products through RRSPs or RRIFs: A life annuity, purchased from a Canadian insurer with funds from an RRSP or Registered Retirement Income Fund (RRIF), can provide a guaranteed monthly income stream that helps cover care costs. Unlike a standalone LTC policy, an annuity provides income regardless of whether care is needed.
• Home equity: For Canadians who own their homes, a reverse mortgage can be a meaningful source of funds for care costs. Homeowners aged 55 and older can access a portion of their home equity without monthly payments, through products like HomeEquity Bank’s CHIP Reverse Mortgage. It currently offers a 5-year fixed rate at 6.64%, which works out to an APR of 7.06% after factoring in closing costs and administrative fees. Funds from home equity loans and reverse mortgages are tax-free and, importantly, don’t affect government benefits such as Old Age Security (OAS) or Guaranteed Income Supplement (GIS).
• Dedicated savings: Building a distinct long-term care fund within a TFSA — separate from general retirement savings — allows tax-free growth and flexibility. This requires discipline and a realistic estimate of future care costs, but removes the premium risk.

How to find the best long-term care policy

If Susan does decide to buy long-term care coverage, the details of the policy matter enormously.