New research from advisors partnership suggests that most people over 50 do not know that there are insurance products for funding long-term care. Half say they would sell their home to finance care for themselves.
Two thirds believe that long-term residential care costs less than £30,000 a year, while a third believe it will cost less than £20,000 and 12% estimate £10,000 a year. Typical fees are around £50,000 for a good quality care home. This could leave many people running out of money and needing to fall back on the state.
Most people were accurate in their estimation of how long they are likely to live, into their 80s. Also they were about right that 40% will go into care for around five years.
At present it is two years on average, four years for self-funders, with one in ten living for eight years in care; but in thirty years time those periods could be a lot longer.
Long term care insurance: News update: 9 June 2010