As our longevity increases, so does the possibility of losing our independence and requiring long-term care. Private care can be extremely costly, whether you stay at a health-care residence or at home.

One way to safeguard against this financial risk is to purchase longterm care insurance. Note that several insurers have left the longterm care insurance marketplace, and today only a couple of national providers offer this coverage as a stand-alone product. However, it remains a solution worth considering.

Another option is to self-insure – accumulating funds over time to cover potential health-care costs. A Tax-Free Savings Account (TFSA) can be an ideal investment vehicle – your mutual fund investments grow tax-free and withdrawals are tax-free.

Should you require long-term care at any point in your retirement years, you’ll have funds available to help meet the costs. If you’re fortunate, staying relatively healthy and remaining independent, your TFSA funds can become assets for your heirs.