TORONTO, July 10, 2002 — The prospect of failing
health and long term illness popping up in their later years has nearly half of Canadians
concerned about becoming a burden to others. Despite these concerns, few understand all
the options that are available to help ease their worries, says a new survey released today by RBC Insurance.
The survey, conducted by Ipsos-Reid, found that while 47
per cent of Canadians are concerned about becoming a burden to someone when they get
older, just half of them — 49 per cent — had ever heard of long term care insurance.
“Our study shows people are aware of the potential
health care costs associated with aging, but they haven’t explored the options
available to prepare for that possibility,” said Kathryn Giffen, president and COO of
the life insurance division of RBC Insurance. “The important thing is that
professional advice and suitable products are available to help ease their worries.”
According to Health Canada research, as the baby boomers
age, the seniors’ population is expected to reach 6.7 million in 2021 and 9.2 million
in 2041 (nearly one in four Canadians). As Canadians prepare for retirement, long term
care issues will likely move to the forefront of many personal agendas. Long term care
insurance provides benefits to assist with the payment of health and personal care
services for individuals who become unable to care for themselves.
The RBC Insurance survey found that among those who
don’t already have long term care insurance, the interest to know more about it is
high. Sixty two per cent of Canadians who have a financial advisor and don’t already
have long term care insurance think it is important to be advised about long term care
insurance by their financial advisor, as part of their financial planning portfolio.
“Financial advisors play an important role in many
aspects of people’s lives, especially when it comes to planning for the future,”
Giffen said. “Assessing a client’s situation and educating them about long term
care insurance is just as important as advising them about retirement planning and life insurance.”
Other findings from the RBC Insurance survey show:
Women are more likely to be concerned about becoming a
burden to someone when they get older than men – 53 per cent compared to 41 per cent;
Canadians aged 18 to 34 (53 per cent) are most likely to be
concerned that they will have to care for their parents when they get older;
Canadians from Atlantic Canada (48 per cent), Ontario (45
per cent) and British Columbia (43 per cent) are most likely to be concerned that they
will have to care for their parents when they get older;
Atlantic Canadians (61 per cent) and Albertans (57 per cent)
are most concerned about becoming a burden to someone when they are older; and
Quebecers (15 per cent) are most likely to have long term
care insurance, followed by residents of Ontario (14 per cent), Atlantic Canada (13 per
cent) Saskatchewan/ Manitoba (11 per cent), Alberta (9 per cent) and British Columbia (6 per cent).
These are the findings of an RBC
Insurance/Ipsos-Reid poll conducted between May 22 and May 26, 2002. The poll is based on
a randomly selected sample of 1,000 adult Canadians. With a sample of this size, the
results are considered accurate to within plus or minus 3.1 percentage points, 19 times
out of 20, of what they would have been had the entire adult Canadian population been
polled. The margin of error will be larger within regions and for other sub-groupings of
the survey population. These data were statistically weighted to ensure the sample’s
regional and age/sex composition reflects that of the actual Canadian population according
to the 1996 Census data.
About RBC Insurance
RBC Insurance provides a wide range of creditor, life,
health, travel, home, auto and reinsurance products to more than five million North
American customers. As one of the top 10 life insurance producers in Canada, RBC Insurance
offers individual and group life and health insurance solutions, including term insurance,
universal life policies, group benefits, critical illness insurance and long term care
insurance. These products are distributed through more than 5,000 independent brokers
affiliated with producer groups, financial planning firms and stock brokerage firms, as
well as through direct sales and a network of career sales agents. For more information,
please visit www.rbcinsurance.com
Royal Bank of Canada (TSX, NYSE: RY) uses the initials RBC
as a prefix for its businesses and operating subsidiaries, which operate under the master
brand name of RBC Financial Group. Royal Bank of Canada is Canada’s largest financial
institution as measured by market capitalization and assets, and is one of North
America’s leading diversified financial services companies. It provides personal and
commercial banking, wealth management services, insurance, corporate and investment
banking, and transaction processing services on a global basis. The company employs 59,000
people who serve more than 12 million personal, business and public sector customers in
North America and in some 30 countries around the world. For more information, please
Health Canada research shows that Canadians continue to live longer. In fact, it is estimated
that the growth of the seniors’ population will account for close to half of the growth of the overall Canadian
population in the next four decades*.
Living longer means many Canadians will need larger retirement savings to handle long term care
needs. One option when planning for long term living needs is long term care insurance.
Long term care insurance can help protect one’s
savings, assets and financial security by helping to pay the cost of long term care.
It can also provide more flexibility for care options, by
allowing an individual to select a suitable private care facility or receive professional
attention in the comfort of their own home.
Fast facts on aging in Canada*
According to Health Canada research, seniors (individuals
aged 65 and over) constitute the fastest growing population group in Canada.
In 2001, it was estimated that 3.92 million Canadians were
65 years of age or older, a figure that is two thirds more than in 1981.
As the baby boomers age (born between 1946 and 1965), the
seniors’ population is expected to reach 6.7 million in 2021 and 9.2 million in 2041
(nearly one in four Canadians).
In fact, the growth of the seniors’ population will
account for close to half of the growth of the overall Canadian population in the next four decades.
Typical home care costs**:
RN or auxiliary nurse, $30 to $38 per hour
Medical services aid, $14 to $19 per hour
Typical long term care facility care costs***:
For Certified facilities with government subsidies:
A private facility may cost $1,901.23 per month
Semi-private may cost $1,597.06
Ward facility may cost $1,353.73 (or $919.73 with additional
subsidy based on income test)
* Source: Health Canada – ‘Canada’s Aging Population’ report
** Source: Victoria Order of Nurses
*** Source: Province of Alberta Health Care Web site
(note: costs provide an indication of national standards as at November 2001)