Try Planner

Insurance · Long-term care

Long-term care insurance in Canada

Here’s the honest starting point most articles bury: you mostly can’t buy standalone long-term care insurance in Canada anymore. The market withdrew. This guide explains what happened, what the government actually covers, and the realistic ways to fund care instead.

Updated June 2026

The market has largely withdrawn

Manulife stopped taking new individual LTC applications in 2017; Sun Life discontinued its main long-term care product in 2021. In 2017 the last reinsurer backing these risks in Canada exited. The result: traditional standalone LTC insurance is no longer something most Canadians can realistically buy.

Long-term care covers help with everyday living — bathing, dressing, meals, mobility — whether at home, in a retirement residence, or in a long-term-care home. It’s a real and growing cost: a private long-term-care or retirement-home stay can run into thousands of dollars a month, for years. The insurance that used to cover it, though, has mostly disappeared, so the planning question has shifted from “which policy?” to “how will I fund this myself, and what does the government cover?”

What provincial care actually covers

Provinces fund the medical and nursing care inside approved long-term-care homes and subsidize some home care, often income-tested. But the system is a floor, not a full solution: residents pay a substantial accommodation co-payment, wait lists are long, and a private room, extra home-care hours, or retirement-residence living are paid out of pocket. Assume you’ll cover a meaningful share yourself.

The realistic alternatives

Self-fund from earmarked savings

The most common plan: ring-fence part of your retirement savings (often in a TFSA or non-registered account) specifically for future care. It’s flexible, keeps the money if you never need care, and avoids decades of premiums — but you carry the full risk yourself.

Critical illness insurance

A CI lump sum on a stroke, cancer or other covered event can fund early care needs. It’s not LTC insurance and won’t cover years of custodial care, but it’s widely available and fills part of the gap. See our critical illness comparison.

Permanent life insurance

A whole or universal life policy you already hold builds cash value you can draw on, and some let you access the benefit if you become chronically ill. It’s an estate tool first, but the cash value can double as a care reserve.

Home equity

For many Canadians the home is the largest care reserve — through downsizing, a HELOC, or a reverse mortgage in later years. It’s a backstop, not a plan, and should be weighed against leaving the home to heirs.

Frequently asked questions

Can you still buy long-term care insurance in Canada?
Barely. The standalone individual LTC insurance market has largely withdrawn: Manulife stopped accepting new applications for its LivingCare product in 2017, and Sun Life discontinued its main Sun Long Term Care Insurance in 2021 (it kept a separate retirement-health product). The 2017 exit of the last reinsurer (Munich Re) removed the backing the market needed. A few niche options exist, but most Canadians will not find a traditional individual LTC policy to buy today.
Why did long-term care insurance disappear in Canada?
A mix of factors: claims and longevity ran higher than insurers priced for, low interest rates made the long-dated liabilities hard to fund, take-up was low, and in 2017 the last reinsurer backing these risks in Canada left the market. With no reinsurance and poor economics, the major insurers exited individual LTC over roughly 2012–2021.
How will I pay for long-term care without insurance?
Most Canadians self-fund from savings, supplemented by provincial programs. Provinces subsidize parts of home care and long-term-care homes, but they don’t cover everything — the accommodation portion of a care home is largely paid by the resident, and private or enhanced care costs more. Earmarking retirement savings for care, plus home equity as a backstop, is now the default plan. Build the cost into your retirement plan.
Does the government pay for long-term care in Canada?
Partly. Provincial health systems fund medical and nursing care in approved long-term-care homes and subsidize home care, often income-tested. But residents pay a substantial accommodation co-payment, wait lists are long, and anything above the publicly funded level — a private room, more home-care hours, retirement-residence living — comes out of pocket. The public system is a floor, not a full solution.
Build it into your plan Critical illness insurance

Educational only, not insurance, tax or care advice. The withdrawal of major individual LTC products (Manulife 2017, Sun Life 2021) and the 2017 reinsurer exit are widely reported; provincial care coverage and costs vary by province and change — confirm current programs with your province and a licensed advisor. See our methodology.