71% of Financial Advisers want to see more long term care products available.
(For information on improving your and your families situation regarding long term care, please ask for our little booklet on the subject. Be aware that trying to put your house in trust to avoid care fees is classified as deliberate deprivation. As an excercise, it can be very valuable for other reasons, but deliberately trying to avoid care fees is not one of them. If you want information on equity release, enhanced annuities etc and don’t have a financial adviser, we will be pleased to introduce you to one. We don’t offer financial advice ourselves.)
Research undertaken by independent financial research company Defaqto shows that 71% of advisers believe that providers should create new prefunded long term care products.
In July 2011, the Commission on Funding of Care and Support published its report, Fairer Funding for All2. The report made a number of recommendations but chief among these was a call for a life time cap on care costs. If this recommendation is adopted, such products would enable clients to insure the first £35,000 of care costs. (Ed: As stated elsewhere, the Government have done something about Long Term Care funding since – they have produced a brilliant new system which looks better but is not. Their £72,000 care cap will help very few people, as most will be dead before it kicks in. Worse still, most people will already have been bankrupted by having to pay for what are called the “hotel costs” – broadly, all non medical or essential qualified medical staff costs.)
To be honest, the smoke and mirrors approach of sucessive Governments means that you are utterly on your own in most cases as the State just can’t afford to pay up. All we can suggest is that you stop reading this and give us a call to go through what CAN be done to help and protect you if and when things go wrong. We offer a wide range of options.
However, Defaqto research shows that only 17% of advisers think it is likely that the Commission’s proposals will be adopted, while many advisers thought it unlikely or were unsure.
Defaqto’s paper on Long Term Care highlights the findings of its adviser survey and outlines the key issues currently affecting the sector, including the possible impact of the Dilnot report.
Ben Heffer, Defaqto’s Insight Analyst for Life and Protection, said:
“If the Government adopts Dilnot or similar proposals, it stands to open up the product market and offer clear product sales opportunities for advisers. However, the lack of products is not the only problem within the long term care insurance market. Our research also showed that 61% of advisers do not advise their clients on LTC for a variety of reasons.
“The product market is poorly served with just a handful of plans to choose from but, if the long term care market is to flourish, greater commitment from the adviser community is also required. The purpose of the paper is to demonstrate the need for long term care insurance and to highlight the opportunities for advisers. The need exists now and advisers are uniquely placed to add value.”