A June 2005 study issued by Statistics Canada revealed that there are 1.1 million mature singles in Canada and half of them did not expect to marry. Specialists say this demographic represents an interesting market for advisors selling long-term care insurance.

Christine Van Cauwenberghe, director of tax and estate planning for the Investors Group, is an expert at helping singles do proper financial and estate planning. One of her suggestions is that single people obtain long-term care insurance (LTC).

“Singles are not as concerned about leaving a nest egg for a partner, but they are concerned about their own well-being because they can’t necessarily rely on someone else to take care of them in the event that they become ill,” she says.

Ms. Cauwenberghe adds, “So unlike a married or common law couple, if you are single and you suffer from a severe illness or accident, then you can’t just assume that there will be another income earner in the household or someone capable of caring for you.”

In a presentation entitled, “How to talk to your clients about long-term care planning,” at the Canadian Institute of Financial Planners (CIFPs) recent annual conference in Niagara Falls, Karen Henderson, a LTC specialist and founder of the Caregiver Network, highlighted that singles and women are two of the top markets to target for LTC. “’Who will care for me?’ is a question that needs to be answered by single women,” she told the crowd.

Tamara Adamson, CEO of Richmond-Hill based Link Insurance, is having no problem selling LTC to the singles market. She has noticed that her single, women clients are particularly interested in it. “I find that my female population, especially the 35-plus that has never been married and has no dependents, is much more concerned about LTC than they are about life insurance,” she says.

“They are saying, ‘I am 35-years old, chances are if I get married, I will get married to someone who is well established and doesn’t need my money if I die. It is unlikely I will have any children, so if I die who really cares? But if I don’t get married or have children, then who is going to look after me?’” Ms. Adamson explains.

In addition, Ms. Adamson feels that insurers need to do more to promote the product. For her part, she suggests LTC coverage every time she goes into a life insurance appointment with a client.

David Baker, director individual health, product development, for Sun Life Financial agrees that LTC has an obvious appeal to the singles market. “It is a way for them to maintain their level of independence.”

The company’s product, Clarica Long-Term Care, is sold through Sun Life’s Clarica sales force. “We have a specific division dedicated to LTC. We feel very strongly that this is a growth segment in the marketplace,” he says.

Mr. Baker underlines that LTC is also important for couples. “One of the things we try to convey to specialists and advisors is tha, particularly with LTC, there can be a significant impact on the quality of life of the other partner. While there is definitely a need in the singles market, there is also a need in couples. Because the partner ends up becoming the caregiver.”

Mr. Baker also predicts that younger people will begin considering LTC. He explains that young people have a better chance of qualifying for LTC. “When you are younger you lock in at a younger rate. So the affordability and insurability factor are attractive for young people.”

However, Nancy Cassimatis, director of niche products at Unity Life, says that LTC tends to target middle-aged to older individuals. “It is not a product that is very popular in the younger, single market,” she says. Ms. Cassimatis explains, “as a young single person, you are going to put a lot of things in place before you get to the long-term care.”

Daniela Cambone

Make a gift of long-term care insurance

Sean Long, a living benefits specialist and founder of www.criticalillnesslearning.com, encourages his clients to provide their ageing parents with long-term care (LTC) insurance coverage.

“What I am saying to people in their late 30s to 50s is not to buy it themselves, but to buy it for their parents as a present. One of the eye-opening experiences I had was looking after my parents. If I would have been able to buy a policy for them, I would have, but there was no LTC at that time.”

He explains that parents want to remain self-sufficient and in control. “I believe in products that allow us to be independent. When you reach 65 or 70-years of age, you have three choices; you can trust the Government of Canada to look after you, you can trust your kids to look after your best interests, or you can trust yourself. Yourself will do the best job.”

Overall, he warns advisors to be patient with the product. “Long-term care is not a fast sell; it is one where you plant the seeds. It is not going to be a one or two visit sell, it is going to be over time. You have to know what the government provides and what they do not provide,” says Mr. Long.

The waiting will pay off, he says. “Long-term care is going to make up 25% to 30% of the market in sales coming up. As an agent, you can jump on it and learn about it, because it will be the coming thing.”

LTC in a nutshell

Long-Term Care insurance (LTC) pays a benefit to cover the costs incurred when one develops a chronic illness or a disabling condition that requires in-home caregivers or relocation to a long-term care facility.

Long-term care insurance is generally available up to age 80. This is a major difference compared to critical illness insurance, which one can generally only purchase up to age 65.

And, although LTC is considered a younger product in Canada, it is well-developed in the U.S. It has been offered south of the border since 1970, while it only appeared in Canada in the 1990s. Six players currently offer the product in Canada: Desjardins Financial Security, Manulife Financial, RBC Insurance, Sun Life Financial, Unity Life and La Capitale Civil Service Mutual.