Benefits become payable when a pre-determined number of the activities of daily living (ADLs) can no longer be performed. ADLs are broadly divided into washing, dressing, toileting, feeding, walking and cognitive ability.
This allows the client, in conjunction with a care assessor attached to the respective LTC provider, to discuss the options of remaining at home or entering a registered institution.
LTC is expensive to provide, and you cannot rely on the State to help you out if you have significant amounts in savings – it is failing to help nearly half of those who do qualify for assistance, because the local councils cannot afford to. If you have more than £21,000 in assets, then you are on your own funding-wise. Only those with assets below £12,750 will have all their care funded by the State.
If you own a property, then you would be expected to sell this to fund your care if you did not have insurance, or enough money from other sources to cover the care home bills.
The cost of a four-year stay in a care home is set to double over the next 20 years, from £112,312 to £223,476 by 2028, according to research from Saga.
Anyone who self-funds their care may also be entitled to Attendance Allowance, which they may not be receiving.
The premiums for these plans are in direct relation to the probability of claims, so they are relatively expensive and it should be remembered that most are reviewable - although some offer guarantees at age 70 and over. This is a relatively new product to the market so there is little claims experience upon which to make judgements about future premium rises.
Source: The Onion Group and MyMoneyDiva
