Long term care Insurance
Discussion
Are you talking about something to pay into now long term that will pay out when you are older or need care?? In which case talk to a IFA for sure
If its for an older person now
Try these people or similar:
http://www.eldercare-solutions.co.uk/
Or an IFA as they can help with care fee annuity plans, although i believe there are only two or three companies offering them in the UK, the advantage of these is that they are paid to the care home with no tax deducted or due, therefore far more efficient
If its for an older person now
Try these people or similar:
http://www.eldercare-solutions.co.uk/
Or an IFA as they can help with care fee annuity plans, although i believe there are only two or three companies offering them in the UK, the advantage of these is that they are paid to the care home with no tax deducted or due, therefore far more efficient
The main players in providing long term care insurance were PPP lifetime care (now part of AXA), also, Norwich Union (Future Assured Plan) and Skandia (Protect Long Term Care) offered a similar product.
The PPP policy was excellent in that it was avaible for everyone - long term care is not for "old" people.
However PPP removed themselves from the market and Norwich Union (Aviva) and Skandia followed quickly.
Partnership Assurance offered a policy called Care Prepared but the bebefit was paid to an institution and not the plan holder.
The PPP policy was in effect a deferred annuity.
According to PPP Lifetime Care, two out of five people aged 60 or over suffer from a limiting long term illness. More than half those over 65 suffer from some disability and one in four are confined to their homes.
According to PPP's claims statistics in 2001, the most frequent causes of disability in old age are :-
dementia 39%
strokes and neurological 21%
orthopaedic and arthritis 16%
cardiac and circulatory disorders 11%
frailty 7%
cancer 6%
The PPP statistics are out of date but they still provide useful background data.
It is understood that there are currently 350,000 people in the UK who have had a stroke which has left them with a severe disability and there are 500,000 sufferers of Alzheimer's Disease.
The typical cost of full time residential care is now in excess of £3,000 per month. Someone who needs nursing care for a period of 15 years, at a cost of £3,000 per month increasing by 5% pa compound would incur total costs of over £800,000.
Normally, the State will contribute to these costs only if an individual's assets are £23,000* or less. If assets are between £14,000* and £23,000* only partial help may be available (and only after a stringent means test). As a result, every year an estimated 40,000 homes are sold to meet the cost of care.
Life expectancy:
In 1901 the average life expectancy for a man in the UK was 45.7 years.
In 1997 it was 74.6 years but average life expectancy without limiting long term illness was only 66.9 years.
The corresponding numbers for women were:
In 1901 average life expectancy 49.6 years.
In 1997, 79.6 years but average life expectancy without long term illness was 68.7 years.
Long term illness:
In 2000, 57% of people aged 65-74 and 64% of people aged 75 and over in the GHS sample reported a long standing illness.
Arthritis:
Over 8 million people in the UK have arthritis.
More than 3 million people in the UK are significantly disabled by a rheumatic disease.
Around 20% of all visits to doctors are arthritis related.
Strokes:
Every year about 100,000 people in the UK suffer a first stroke (90,000 over retirement age).
At any point in time there are over 300,000 people who have had a stroke which has left them with severe disability.
Stroke is the third most common cause of death in England & Wales, after heart disease and cancer.
Dementia:
Around 700,000 people in the UK have some form of dementia. The majority of these (about 681,500) are over 65 years old.
It has been estimated that 55% of those with dementia are suffering from Alzheimer's Disease.
One in 20 people over the age of 65 will develop dementia. This compares to one in 5 people over the age of 80.
The PPP policy was excellent in that it was avaible for everyone - long term care is not for "old" people.
However PPP removed themselves from the market and Norwich Union (Aviva) and Skandia followed quickly.
Partnership Assurance offered a policy called Care Prepared but the bebefit was paid to an institution and not the plan holder.
The PPP policy was in effect a deferred annuity.
According to PPP Lifetime Care, two out of five people aged 60 or over suffer from a limiting long term illness. More than half those over 65 suffer from some disability and one in four are confined to their homes.
According to PPP's claims statistics in 2001, the most frequent causes of disability in old age are :-
dementia 39%
strokes and neurological 21%
orthopaedic and arthritis 16%
cardiac and circulatory disorders 11%
frailty 7%
cancer 6%
The PPP statistics are out of date but they still provide useful background data.
It is understood that there are currently 350,000 people in the UK who have had a stroke which has left them with a severe disability and there are 500,000 sufferers of Alzheimer's Disease.
The typical cost of full time residential care is now in excess of £3,000 per month. Someone who needs nursing care for a period of 15 years, at a cost of £3,000 per month increasing by 5% pa compound would incur total costs of over £800,000.
Normally, the State will contribute to these costs only if an individual's assets are £23,000* or less. If assets are between £14,000* and £23,000* only partial help may be available (and only after a stringent means test). As a result, every year an estimated 40,000 homes are sold to meet the cost of care.
Life expectancy:
In 1901 the average life expectancy for a man in the UK was 45.7 years.
In 1997 it was 74.6 years but average life expectancy without limiting long term illness was only 66.9 years.
The corresponding numbers for women were:
In 1901 average life expectancy 49.6 years.
In 1997, 79.6 years but average life expectancy without long term illness was 68.7 years.
Long term illness:
In 2000, 57% of people aged 65-74 and 64% of people aged 75 and over in the GHS sample reported a long standing illness.
Arthritis:
Over 8 million people in the UK have arthritis.
More than 3 million people in the UK are significantly disabled by a rheumatic disease.
Around 20% of all visits to doctors are arthritis related.
Strokes:
Every year about 100,000 people in the UK suffer a first stroke (90,000 over retirement age).
At any point in time there are over 300,000 people who have had a stroke which has left them with severe disability.
Stroke is the third most common cause of death in England & Wales, after heart disease and cancer.
Dementia:
Around 700,000 people in the UK have some form of dementia. The majority of these (about 681,500) are over 65 years old.
It has been estimated that 55% of those with dementia are suffering from Alzheimer's Disease.
One in 20 people over the age of 65 will develop dementia. This compares to one in 5 people over the age of 80.
One of the biggest and most intractable problems that the Coalition has yet to deal with is long term care for the elderly.
At the moment it is something of a lottery with some local authorities providing more than others. We could end up with a compulsory tax to pay for a National Care Service or a voluntary insurance scheme, but neither scheme looks set to be up and running until at least 2015.
In the meantime, people have to cope. Financial help for those needing long-term care is limited. Local authorities not only assess an individual's health needs, but also their ability to pay. With councils short of cash, help is often restricted to those on the lowest incomes with the most severe health needs.
But what irks most people is that those who pay for care for themselves will frequently be forced to sell their home to pay for this care. The means test level above which no financial help is available is just over £14,000 and this usually includes the value of the property.
A place in a nursing home now costs an average of £36,000 a year although actual costs vary widely. A good care home in the south east could easily cost £50,000 a year or more.
At the moment it is something of a lottery with some local authorities providing more than others. We could end up with a compulsory tax to pay for a National Care Service or a voluntary insurance scheme, but neither scheme looks set to be up and running until at least 2015.
In the meantime, people have to cope. Financial help for those needing long-term care is limited. Local authorities not only assess an individual's health needs, but also their ability to pay. With councils short of cash, help is often restricted to those on the lowest incomes with the most severe health needs.
But what irks most people is that those who pay for care for themselves will frequently be forced to sell their home to pay for this care. The means test level above which no financial help is available is just over £14,000 and this usually includes the value of the property.
A place in a nursing home now costs an average of £36,000 a year although actual costs vary widely. A good care home in the south east could easily cost £50,000 a year or more.
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