Planning Future Care

Planning ahead for possible long term care can enable you to remain in control of where you receive your care and provide the income and care support you may need if you require care in your own home or in a care home.

Most people know of someone who has spent large amounts of their capital and income on meeting care costs in later life. We are fully aware that Government policy for meeting older people's care needs prohibits 'wealth cascading down through the generations'. Coupled with this most of us realise that we have reached an era when the average age of the population is increasing. This not only means that there will be a larger number of retired people, but there will also be a smaller number of people working to pay for welfare benefits.

It is no coincidence therefore that the Community Care Act allows only those with the least resources to receive long-term care provided by the State. Even if you qualify for Local Authority assistance your choice of care will be limited to the extent that their budgets dictate.

If you are worried that at some time in the future the cost of care may use up all your available income and capital or you may not be able to choose care to suit your needs NHFA may be able to provide a solution. Care Fees Planning Questionnaire.

Choice

Most older people would prefer to receive the care they need in their own homes however, the majority of people have insufficient savings or income to pay for this and are forced to sell their homes and obtain the care they need in a care home.

Independence

Nobody needing care really wants to be a burden on friends or family who perhaps already have very busy lives. Being able to afford to pay for the care you need can enable you to remain independent whilst also obtaining the quality of care and attention you may need.

Inheritance

Many older people have worked hard all their lives to own their own homes and wish to leave an inheritance for their families. The cost of long term care can prohibit this and in some cases one's Estate can almost be totally expended on paying for care. This can be avoided if adequate provision is made to cover the cost.

Long-Term Care Insurance - Premium Reviews

Most insurers have withdrawn from the LTC (Long Term Care) market leaving existing long-term care insurance policies with premium reviews on the 10 year anniversary of the policy date and yearly thereafter. Experience so far has shown that these are resulting in increased premiums, often substantial. The main reason for such increases is because of the insurance companies' claims experience and the duration of claims being longer than expected. If you find yourself in this situation there are a number of points you should consider. Here we list NHFA's Top Ten Review Tips:

  1. Contact the company that sold you the plan. What help or advice can they offer you now?
  2. Were you made aware of the premium review clause in the plan? If not you may have grounds to complain to the company who sold it to you.
  3. Why did you originally buy the plan? Have your circumstances changed since then? Is it still relevant to your current needs?
  4. How healthy are you now compared with when you took the plan? This will be important if you are considering cancelling it.
  5. Can you afford the premium increases without affecting your lifestyle? If not and the policy is partly to protect assets for your children maybe they can afford to contribute?
  6. Do you still need the protection afforded by the policy benefits? Does it still offer sufficient peace of mind for your future independence?
  7. If you cancel there may be alternative financial solutions open to you, which allow you to make provision for possible long-term care whilst still preserving your assets.
  8. Look closely at the policy small print. It may offer other ways of preserving the core financial benefits without having to significantly increase your premiums. For example, waiving the increasing benefit option.
  9. If you had needed care now would the policy offer sufficient financial benefits to enable you to control where your care is received? If not, is it worth continuing with the plan if it only partially solves the problem?
  10. If you are unable to resolve all the above issues then NHFA offers a no commitment review service that may help you arrive at the best decision for you. Call the Care Advice Line 0800 99 88 33 or email us at enquiries@nhfa.co.uk

Eligibility For Care Assessment Service

NHFA believes that many care assessments are carried out too late to be able to influence positive outcomes such as independent living at home. It therefore takes a more liberal view on eligibility for its own assessments as follows:

A customer will be eligible for a home visit, assessment and care plan when they are usually unable to perform ONE of the following Activities of Daily Living ("ADLs") without the physical intervention of another person:

A diagnosis of a cognitive disorder such as Alzheimer's will also trigger entitlement irrespective of whether ADLs are being failed. Overriding these eligibility requirements is Case Manager discretion to commission a home visit where the overall picture demonstrates a clear need for help, for example where someone is part-failing a number of ADLs or there is a stressful situation building for an informal carer/partner.

As specialist long term care advisers, we have a wealth of experience in advising people how to meet care costs. Being independent and applying this knowledge to planning for future independence, we can look at your particular circumstances and advise on your best course of action. Furthermore, should you need care in the future we will help organise, manage and monitor your chosen care plan in consultation with you and your family. You will not have to manage on your own.

For further advice please complete the Care Fees Planning Questionnaire. We will then, without placing you under any obligation, assess your particular circumstances, and then provide you with a written report detailing the strategy most appropriate for you.

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