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Type of Cover.
There is a growing need for this type of cover because of the Government’s
problems in funding the cost of care for the elderly.
Long term care policies provide for the cost of needing care in a
nursing home or at home.
Premiums can be paid regularly or by a single premium or a mixture.
A claim will only be paid if the policyholder is unable to carry out
certain functions of daily activity without help, such as washing, using
the toilet, feeding and moving around the house.
Benefits can be designed to increase.
Policy
Details.
If benefits are being funded in advance, there is a choice of protection
based and investment based products.
There is another type of product which can be used where immediate
benefits are required. Here a capital sum is used to buy an impaired
life annuity.
A higher income is often paid out from the annuity because having
obtained medical evidence, the underwriters may assess the annuitant as
having a reduced life expectancy.
The benefits from long term care policies are generally not taxable as
in most cases, benefits are paid direct to the care provider.
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