A new LTC insurance from Prudential Financial is only available in the USA but has ideas that UK insurers should consider.
The product helps provide comprehensive coverage for an important class of services not covered by most PMI insurance policies: ongoing care for individuals with a chronic illness or disability.
The product's standard features include:
An Alternative Plan of Care benefit, which may cover new and emerging forms of care that do not become available until years after a consumer has purchased the policy
A Starter Benefit, which offers benefits when a sudden need arises, such as a stroke or car accident. In situations like these, this benefit could begin paying $1500 a month in cash as soon as a chronic illness or disability is certified.
The US insurer makes comments that are a mirror image of the UK, "Healthcare costs are continuing to skyrocket and the government has squarely placed responsibility for paying for long-term care on the shoulders of the individual. Consumers continue to be faced with a wide range of risks when it comes to protecting their assets and income in retirement, as well as care decisions that can affect their quality of life. The ongoing market volatility and uncertainty underscores the value of long-term care insurance as a more stable source of funds to meet potential long-term care needs."
Long term care insurance: News update: 06/03/2009