Healthier lifestyles and advances
in medicine mean that you can
expect to live longer than your
parents.
You must, however, balance this
good news with the increased
possibility that you will suffer
from an age related illness
or disability. As you grow older
it may become more difficult
for you to remain independent,
not just because of a medical
condition, but because you may
be unable to carry out everyday
tasks or activities
of daily living (ADLs)
without help.
Whilst more and more people
will need care, less help is
being provided by the State
and Local Authorities. As the
cost of care increases and the
proportion of taxpayer's contribution
decreases, only the very needy
are likely to receive assistance.
Although the State and Local
Authorities may provide some
benefits, they are likely to
be subject to means testing.
Families are now smaller and
there will be fewer younger
relatives to rely on. This means
that community, residential
and nursing home care are now
playing an increasingly important
role.
The difference between a residential
home and a nursing home is the
level of medical cover provided.
The medical cover in a residential
home may be limited but a nursing
home provides 24-hour nursing.
The Community Care Act, which
came into force in 1993, passed
the responsibility for long
term care from the NHS to Local
Authorities. The extent and
amount of payment from Local
Authorities is under review.
Local authorities and the DWP
use different levels of assets
for means testing.
There are basically two types
of long term care plans:
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Protection
Based |
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The
protection products can
be either regular or single
premium funded. The majority
of regular premium products
do not have any surrender
value or death benefit.
Single premium contracts
may have a death benefit
within a certain time
period. This may be part
of the main plan or may
be covered by extra life
cover with the contract.
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Investment
Based |
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The
investment-based contracts
are either regular premium
or single premium unit
linked or 'whole-of-life'
based contracts. They
are dependent on unit
linked investments funding
the long term care protection
plan. The value of the
investments funding the
plan can go up as well
as down and is not guaranteed.
The majority of long term
care benefits are paid
tax-free as they are paid
directly to the care provider. |
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Hedgelands Financial Services,
Hedgelands, Abbotskerswell, Newton Abbot, TQ12 5PW
Hedgelands Financial Services is a trading name
of Honister Partners Ltd. Honister Partners Ltd
is an appointed representative of Sage Financial
Services Ltd, which is authorised and regulated
by the Financial Services Authority. Sage Financial
Services Ltd is entered on the FSA register (www.fsa.gov.uk)
under reference 150452. The information and content
of this website is intended for UK consumers only
and is subject to the UK regulatory regime. The
FSA do not regulate will writing services and some
forms of mortgages and tax planning services. Honister
Partners Ltd Registered Office 1 Nicholas Road,
London W11 4AN. Registered in England and Wales
no. 06923303. |
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