Long term care is needed when a person becomes ill or suffers a disability that makes them unable to carry out their activities of daily living, with the probability that this disability will continue over the long term. You can buy long term care insurance to help fund the care costs.
Guide to Long Term Care
You may need to think how you would cope financially if you need long term care help looking after yourself or your partner, in years to come. Faced with costs like this, it is not surprising to learn that more and more people require elderly care and are having to sell their home to help with the funding burden
The NHS now only provides and/or pays for the Nursing Care Service Component of a person's long-term care service needs. All other costs and services associated with long term care are your responsibility unless you qualify for Local Authority assistance. In Scotland, Free Personal Care is now available.
If your Local Authority agrees that you need a care home it will assess your means to work out what proportion of the costs is your responsibility, and what the Local Authority will pay. If you get a contribution from the Local Authority, the Authority will contract with the care home, pay the home direct but ask that you make your contribution towards the fees to them. The size of your contribution depends on the assessment of your wealth by a means test. Means testing is based on net worth to determine the level of funding it will agree to. The qualification bar on care for elderly is set very low...at the breadline level.
In England:
Assets greater than upper means test limit
- You will not be entitled to any financial assistance from the Local Authority for long term care costs in a care home - it will be up to you to make all your own arrangements for care.
Assets between the means test limits
- Your Local Authority may give some assistance. The amount of assistance takes into account all of your actual income and the 'tariff income. This is all your income, less the Personal Expense Allowance.
Assets below lower means test limit
- You will have to give up ALL your income to the Local Authority. They will top it up to meet care fees. Income includes all of your private pensions, plus most of the Social Security benefits to which you are entitled. You can keep a small amount for personal spending.
Types of long term care insurance
Immediate care
Immediate Care - Long Term Care Insurance – you buy this when you actually need care.Pre funded care
Pre funded care - Long Term Care Insurance – you buy this in advance, in case you need care in the future.
Elderly Care Services
So that your local adviser can begin to guide you through your long term care insurance options, you will need to provide some information by completing the attached form. Alternatively, you can simply call our Advice Line on 0800 043 0725