VitalityLife has added a dementia benefit to its serious illness cover (SIC) policy which aims to protect customers against the rising costs of later life care.
The benefit, Dementia and FrailCare Cover, is being offered at no extra cost and will provide members with protection for a range of degenerative later life illnesses after the initial expiry of their SIC product.
Members will receive a severity-based pay out following deterioration of health in later life.
The cover aims to limit the financial sacrifices individuals and their families may have to make, while protecting assets such as their home.
Dementia and FrailCare Cover begins immediately following the end of the term of SIC, and will effectively continue as a whole of life benefit.
The benefit amount will be equal to 50% of the remaining SIC benefit amount, with a cap to the overall benefit of £100,000.
For Accelerated Life and SIC policies, Dementia and FrailCare Cover also includes a funeral benefit equal to 10% of the remaining life benefit amount, subject to a cap of £10,000.
Herschel Mayers (pictured), chief executive of VitalityLife and VitalityInvest, said so far the insurance industry hasn’t done nearly enough to recognise the increasing prevalence and impact of conditions such as dementia and frailty in society.
“This is a world-first and addresses one of the most significant problems in the protection industry, and society more broadly, by helping people retain their dignity and independence during what can be a vulnerable stage of their life,” he added.
Nicky Cave, managing director at Eldercare Group, said the development should help to improve financial stability in later life for future generations.
“It’s a different and innovative approach that advisers should consider when discussing a client’s current and future protection needs because when it comes to funding the social care of our elderly, the safety net has worn dangerously thin,” Cave said. “The way I see the social care landscape moving, choice and control will only be possible if we make financial provision for ourselves.”