Arranging and paying for nursing home or long term care for an elderly relative can be an overwhelming responsibility - and one that most of us will eventually be faced with in the years to come as our population ages. And while we all want to provide the best care possible for our loved ones, managing the financial strain of this important obligation is often a very real concern. What if they outlive their savings and the money runs out? Will you and your family be able to bear the monetary burden?

Manulife Financial has designed a plan with those concerns in mind. Their Nursing Care Income Plan provides the security of guaranteed lifetime income based on the convenience of one up-front investment. The plan allows you to choose the required monthly income amount up-front and then guarantees to pay that amount throughout the life of your family member or relative.

The amount of the up-front investment is based upon factors such as age, health and amount of monthly income required. Additionally, in most cases, health status can be determined through existing medical records, eliminating the need for new medical exams.

The Nursing Care Income Plan is geared towards those suffering from a serious health condition and families faced with managing and financing long term or nursing home care. Also, this plan may be beneficial for anyone requiring nursing care who would like to ensure that part of their savings remain intact for future inheritances.

One of the key features of the Nursing Care Income Plan is its inherent flexibility. The monthly income can be paid directly to the long term care facility or nursing home, to a Power of Attorney, or if you wish, to the family member requiring care. The plan also has built-in automatic increases of up to 5% each year, designed to accommodate rising costs.

The plan also provides further flexibility by giving you the option of providing for immediate monthly income needs or using it as a safety net if care is still required after a specified period.

From a tax perspective, the one up-front investment required by the Manulife Nursing Care Income Plan can be paid from your family member's pension, RRSP or RRIF without incurring tax penalties. Additionally, it could also come from non-registered savings, such as those acquired through the sale of your family member's home.

For more information on the Manulife Nursing Care Income Plan, please contact Martin Kosterman or David Newman at Fiscal Agents Insurance Limited at (905) 844-8552.

Related Material

The Toronto Star's columnist Jim Daw's recent article on the product
At Manulife on the web:- Long-term care