As our life expectancy increases, so does the likelihood of requiring health care or assistance with daily living. This support can be expensive, whether you have private care at home or move to a private health-care residence.

Government assistance is limited, so you may want to consider how you would cover the costs of potentially requiring long-term care. One solution is to purchase insurance that covers care in a residence or at home. If you’re interested in this option, it’s worthwhile to consult with an insurance expert earlier rather than later, as premiums become more expensive at older ages.

Another solution is to set aside funds over time to meet this potential need, perhaps dedicating mutual fund investments in a Tax-Free Savings Account (TFSA) or a non-registered account. You could contribute a set amount each pay period, contribute your annual bonuses, or deposit available cash after your children have left home and you’ve paid off the mortgage. If you don’t require long-term care, these dedicated mutual fund savings could become estate assets for your heirs.