What is Long Term Care insurance?

Improvements in healthcare and general living standards mean that people are living longer, healthier lives.  In recent years we have seen particularly significant improvements in life expectancy at older ages.

However, a large proportion of the population will need some form of care in their later years.  Statistics indicate that for men retiring today 1 in 6 will have at some time a level of disability such as to require full time long term care.  The figure for women is 1 in 4. (Source: Swiss Re Life & Health, Long Term Care Data Pack 1999).   

Within this changing situation, people are buying long term care insurance for two main reasons:

Protecting hard-earned wealth

Long term care insurance, by increasing your income for as long as you need care, can help you avoid having to use other hard-earned assets (for example the family home, savings or other investments) to pay for care. 

Maintaining independence and dignity

Long term care insurance can provide people with as much choice as possible in the way that they are cared for – for example in their own home rather than in a residential or nursing home.

Fewer people are nowadays in the position where they can be cared for by relatives, as families now live further apart.  Often being cared for by relatives is not what either party wants in any case.  In particular, people generally wish to retain as much independence as possible for as long as possible.

The quality of care available in both the private and public sectors varies widely, as does the cost.  The average cost of being cared for in a nursing home in the UK is around £19,604 per annum.  (Source: Laing and Buission – care of elderly people market survey 2000).  

The cost of being cared for at home with the same level of disability is generally higher.

To speak to one of our fully qualified independent financial advisers now either phone 0871 433 3700 or click the contact section on the bottom of this page and someone will speak to you straight away to help you with your life assurance choices.