A new “risk-free, tax efficient” long term care product that promises to turn the market upside down is in the process of being launched.
The policy, available via Fees Assured, is a combination of four schemes including insurance for the nursing home, which will cover the relative paying for the policy if they lose their job through accident, sickness or unemployment. Other elements include: life insurance on the elderly person ensuring that if they die their assets will go to the family; equity release on the property if they are unable to meet the LTC payments; and life insurance on the life of the paying relative.
The product, which will be distributed via IFAs, includes the ability to purchase deferred or immediate care annuities alongside impaired life or whole of life plans.
“The combination of these products will be particularly attractive for the individual going into care and their family if they have an inheritance tax liability on their estate. Those acting as guarantors to fees can buy life cover on fairly short terms. In addition, accident, sickness and unemployment is another useful contract,” said Stuart Bayliss, managing director of Fees Assured.
For more information, call 020 7684 9000.