Few households seek specialist financial advice when paying for the care of their elderly, according to FirstStop Care Advice.
FirstStop provides advice on housing, care and finance for the elderly. 70,000 homes are sold each year to pay for care which means that less than 5 per cent of people who could possibly benefit from immediate care fee payment plans are considering them. Immediate care fee payment plans are purchased by older people to meet the shortfall in their income when faced with high care costs.
Philip Spiers of FirstStop Care Advice says: "It is such a shame that the only product available to help mitigate high care costs is hidden from those that need it most. Immediate care fee payment plans can potentially cap the cost of care to the cost of the plan leaving a considerable amount of the average estate for the family."
FirstStop's latest survey of immediate need care fee payment plans shows that prices have fallen over the last two years. The average cost of purchasing a care plan to provide £1000 of income increasing at 5 per cent a year during 2007/2008 was £36,822 compared with the average 2006 price of £39,791, a massive price cut of around 7.5 per cent.
Long term care insurance: News update: October 2008