Long Term Care - The Market Reality

Long term care insurance 

Many people find that insuring for possible future care needs makes sense for them. If you use your savings to pay for your care, you run the risk of using up your capital leaving very little for yourself, or for your family when you die.

Products

There are two types of long term care insurance:

• Long term care insurance - for future long term care needs

This is paid for over a period of time, so that it will pay for your care when you need it. Most insurers base their assessment of whether to pay out on six 'activities of daily living' which are: washing, dressing, eating food already cooked for you, mobility, transferring (for example getting in and out of bed) and continence. Insurance schemes usually pay out when you are unable to manage two or three of these activities, depending on the scheme, or are diagnosed as suffering a mental impairment.

• Immediate care insurance - for immediate long term care needs

Many insurers offer a scheme for those who need immediate care. Normally you would pay a single premium, with the amount based on how long the insurance company thinks you'll need care.

Long Term Care costs are not cheap, and insurance can represent a significant expense, especially in one payment. However, set against the cost of buying care directly and as protection against unexpected or longer than expected costs, you might consider it worthwhile. Long Term Care insurance is complex and it is a good idea to speak to an independent financial adviser who specialises in long term care planning.

Long Term Care We do not advise on long term care but can introduce you to another Appointed Representative of Personal Touch Financial Services Ltd, who does

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