The Nursing Care Income Plan

Arranging nursing home or long-term care for an elderly family member is never an easy task. And yet according to Statistics Canada National Population Health Survey, it's a task that more than 45,000 Canadian families will have to face this year alone.

In response to this growing need, Manulife Financial has designed a unique solution for clients with serious health conditions. The result? The Manulife Financial Nursing Care Income Plan - a timely new product that helps ensure your family member's savings will never fall short of the cost of the level of care they need.

The Nursing Care Income Plan from Manulife Financial provides the comfort of guaranteed lifetime income based on one up-front investment. You choose the monthly income amount up front – for example, the amount of your family member's monthly nursing home fees. The Income Plan then guarantees to pay that amount for as long as your family member lives. And because the income to cover these monthly fees will never run out, it could save you and your family years of worry while freeing up considerable resources that you may need.

The security of having a Nursing Care Income Plan
Emily Martin has been a widow for more than 30 years. After her husband Frederick died in his fifties, Emily never remarried. Emily has lived a full and enriched life, enjoying a career as a university English professor and the company of her three children, Martha, Denise and Scott. After retiring, she travelled extensively, spending time with her children and seven grandchildren.

* The up-front investment stated is based on an 83-year-old woman with Alzheimer's who requires level 3 skilled nursing care. Figures shown as of July 16, 2002 are for illustrative purposes only and are not guaranteed. Interest rates are subject to change and full medical underwriting is required upon application. Upon death, payments stop and there is no cash value.

Nursing home costs and government subsidies may be income and/or asset tested depending on the province. Other government benefits such as Old Age Security (OAS) and certain tax credits are also income tested. It is important to have a full understanding of the nursing home care particulars in your province and other income tested government benefits to ensure that converting assets to income does not negatively impact your financial situation.

In her mid-seventies, Emily developed Alzheimer's disease. While her children did everything they could to help and support her through her illness, at age 83, they had to make a tough decision: Emily required the full-time care that only a nursing home could provide.

Beyond the incredibly emotional decision of having to finally bring Emily to a nursing home, there were the financial considerations as well. The family wanted control over the level of care Emily received, but were also worried about the associated costs of caring for a patient whose condition could allow her to live for many more years to come.

Emily's family learned that across Canada, nursing home accommodation fees vary from just under $12,000 to over $57,000 per year. In Emily's family's case, they would have to pay $1,800 a month in fees for the level of care she needs. The family calculated that monthly withdrawals from Emily's bank account would drain as much as $21,600 from her savings every year, for an unknown period of time.

After consulting their advisor, Emily's family chose to cover that annual $21,600 cost indefinitely with a one-time payment of $67,880 by using the Manulife Nursing Care Income Plan. And because the plan takes Emily's health condition into account, the Nursing Care Income Plan saved Emily's family as much as $78,380 when compared to a traditional annuity.

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