The Association of British Insurers (ABI) has published a brief 8-page consumer guide to long-term care insurance.
The guide highlights that a minority of people will be expected to fund their own care in later life and discusses the insurance products available to help families arrange this.
There are only a tiny handful of insurance plans on the market, and unfortunately the guide suggests using equity release to pay for care without warning of the dangers. Equity release is a mortgage and is not long-term care insurance.
The ABI is a body promoting the interests of insurers and not, as is commonly believed, a consumer body or independent.
The ABI has also published a paper discussing the role of the insurance industry in meeting the costs of the nation's long-term care. It argues that financial incentives will be essential to persuade people to invest in long-term care insurance.
The main problems with long-term care insurance:
Very few insurers are left in the market
People may live for 80 years but most only need care for two years
Less than one in five of us ever needs care
Countries with LTC insurance have seen unaffordable premium increases for existing customers
Long term care: News update: 22 October 2010