|
Long-term care
insurance provides a way of paying for
some or all of the cost of any long-term
care you may need. Policies are designed
to pay a regular income to you or an
officially recognised provider of care
for the elderly once you are no longer
able to care for yourself.
There are two main
types of policy:
- Pre-funded
plans
These are taken out when you are in
good health and don’t expect
to need care for some time, and are
usually funded by monthly premiums.
- Immediate
needs plans
These pay out an immediate income
and include immediate needs annuities,
which are schemes set up by insurers
that convert a lump sum into an income
to cover the cost of care, or equity
release schemes, which exchange some
of the value of your home for long-term
care costs.
|
