Prepare for your long-term care plan - changes ahead!
Do you worry about losing your home to pay for future care? Fear not as the government and UK insurance industry are changing the way you can prepare for your care needs.
By understanding and planning for long term care costs you will be able to ensure the safety of your home and other possessions through new insurance products.
The UK insurance industry and the government have signed an agreement designed to help people understand long-term care costs and plan for their future care needs.
The Statement of Intent, signed by the government and the Association of British Insurers (ABI) on 21 January, sets out how they will work together, alongside the implementation of the Care Bill currently going through Parliament, to:
- help people receive the information and regulated advice they need to plan and make decisions about long-term care.
- create the right conditions for a wider range of long-term care financial products, to give people more choice.
Measures in the Care Bill include a £72,000 cap on each individual’s care costs from April 2016, although they will be responsible for other charges, including general living costs if they are in a care home, such as food, energy bills and accommodation.
ABI director-general Otto Thoresen said: "The Statement of Intent sets out our commitment to working with the government to create the conditions for the development of an insurance market that offers a range of products to help people meet their long-term care needs.”
Care and Support Minister Norman Lamb said: "The current care and support system doesn't work and is hugely unfair. People face losing almost everything they've worked hard for or being forced to sell their family home in a time of crisis to pay for the care they need.
"Our reforms will not only stop this from happening but will provide the industry with the certainty it needs to develop products that can help people plan for the future.”
Various providers have different product to support people with care costs. We can provide expert advice to assist you in planning for long-term care, including protecting a family home and other assets, helping you and your family to make informed decisions about the future.
For more information, please contact a member of the Private Client Team or our Financial Services Team.