Concerns are being raised that the Insurance Industry is failing to offer adequate Pre-funded Care products, despite government hopes that an ‘enormous market’ would open up to help people plan ahead for their care needs in old age.
It is estimated that around 60% of people are expected to need care in their old age – with one in 10 facing costs in excess of £100,000 – and although the government is setting a cap on care at £72,000 from the age of 65, legislation that comes into affect from April 2016 – two years after the new rules were announced, Pre-funded Care plans are not available from insurers.
With the State set to pick up care costs after the £72,000 cap has been reached, the BBC reports that; “Ministers had hoped insurance policies would be offered to people so they could make small payments in the decades before they reached the age when they needed care.”
The report continues; “The only products currently on the market are immediate needs annuities, which involve people paying a one-off lump sum – often about £100,000 – when they start needing care.”
Despite the government’s plans to cap personal Care Home Fee exposure in the future, individuals can already protect themselves from risking their family wealth by setting up a Flexible Life Interest Trust.
If this topic is something that affects you or your friends and family, Stone Rowe Brewer’s Wealth Management experts and Will writing professionals would welcome the opportunity to sit down with you and talk about your situation.
Please call us on 020 8891 6141 and ask for the Private Client team.
The full BBC report can be read here http://www.bbc.co.uk/news/health-31023340