Care in Old Age - Long Term Care

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Care in old age - Long Term Care

One tool available is long-term care insurance. In return for a series of regular premiums or a lump sum, the insurance company pays out if you become too disabled to cope alone. The snag with this type of insurance is its high cost. Given this fact and the present rules about state provision of long-term care, it is highly debatable whether long-term care insurance currently has a part to play in the majority of people's financial plans. However, the position might change at some stage in the future.

Successive governments have been concerned at the high cost to the state of caring for elderly people, a cost that is projected to increase as the population over retirement age climbs from the present level of around 10.5 million to a projected 16.5 million by 2040. The previous Conservative government put forward some ideas for encouraging people to plan ahead to pay for their own care later in life, which set the debate going.

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