Long Term Care Protection

Statistics show that, 1 in 3 women and 1 in 5 men, 65 years or over will require residential care of some type. (Source: Royal Commission Report March 1999) that’s on average 25% of all elderly people.
We are all looking forward to a long and active retirement and during the early years in retirement this may well be in most cases true. However, our life expectancy has increased dramatically with the incredible breakthroughs of medical science during the last century. Due to this it has generated the need for us to make provision for ourselves to meet the shortfalls incurred by an ageing society. Provisions should not just be made for our short-term retirement plans but also to meet the financial implications of our long term care needs, as we grow older. Many people think the government will pay for their long term care, but unfortunately, in an increasing population of ageing people, past provisions are not enough to meets the current needs of our ageing society and many get a shock when they realise that the cost of this care has to be met by them.

Talk to our long term care specialists, they can show you how simple it is to plan for your future

Some 70,000 elderly people are forced each year to sell their homes in order to cover the cost of long-term care. The average cost of residential care is now around £24,000 a year (source Laing & Buisson, the health care monitors). For those of you living in London and the South East this cost can be up to 50% more than the national average.

The are two ways to fund for your long term care so that you family may still benefit from your estate.

Pre-Funding – Where a monthly premium is paid prior to you needing long term care to cover the cost as and when you require it.

Immediate Care – Where if you need help straight away can pay a single premium to provide a guaranteed income for life, to cover, whether you choose to stay at your home or move into a care home.

Your premiums in both cases will depend on your age and health at the time you take the plan out. If you need care that costs more than the benefits from your plan, you will need to pay the balance yourself.

What does the State actually Provide?
You will be entitled to £40.00, £77.50 or £125 per week depending on the level of care you require. However if you have £20,000 or more of assets you will not be entitled to these benefits. If you have between £12,250 - £20,000 you will have to pay £1 a week for every £250 of assets you have over the lower limit. You will also have to contribute all your income except for a personal expenses allowance of £18.10 a week. If you have £12,250 or less the costs of your care will be paid for but you will have to contribute all your income except for a personal expenses allowance of £18.10 a week.

Please remember when calculating your assets your home must be included as part of your assets unless your spouse or other dependants continue to live there.
These entitlements are based on our understanding of current legislation November 2004.

As there are many different providers of this form of cover expert advice and guidance is strongly recommended. If you are concerned about this and would like to discuss your own circumstances with our Long Term Care specialists then please contact us and we will call you back normally on the same day or send you the relevant information you have requested.

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