A recent cross party group paper on the long term care funding crisis has made a number of recommendations for resolving the current complicated and rather arbitrary system of providing long term care in the UK says independent financial research company Defaqto.
Ben Heffer at Defaqto says, “There are insufficient products available in the market place to provide choice and a competitive market. Immediate care plans are enhanced annuity products for those who need to start paying for care straight away or in the next few years. However, accruing the lump sum to invest in them is still a challenge for many people. Risk-based plans enable people to plan ahead but few seem to be interested.”
The few plans currently available:
AXA Sun Life
Immediate Lifetime Care Plan
Enhanced annuity for those with long term care funding needs. Maximum benefit £5,000 a month.
AXA Sun Life
Secured Lifetime Care Plan
Up to five year deferred annuity product. Maximum benefit £5,000 a month.
British Friendly Society
A lump sum of up to £10,000 for those failing three activities of daily living.
Immediate Care Plan
Enhanced annuity for those with long term care funding needs. Maximum purchase price £300,000.
Deferred Care Plan
Up to five year deferred annuity product. Maximum purchase price £300,000.
Sun Life Financial of Canada
Elderly Care Cover
A lump sum option on the Financial Foundations Plan for those with long term care funding needs.
A benefit of up to £20,000 pa for those failing 3 or more activities of daily living.