Immediate needs LTC plans are often attractive to the elderly in need of care. But Peter Fisher warns that advisers must research policies thoroughly, or suffer the consequences
Immediate needs long term care (LTC) products are designed to help fund care for those who need it now. They are essentially impaired life annuities providing guaranteed monthly payments to cover all, or part, of the policyholder's care costs. Payments continue as long as care is needed and where the fees have to be met by the resident. They provide a means of converting a capital sum into income to meet the ongoing costs of care ' usually for life. There are also plans that offer a benefit payable after a deferred period of between two and five years. Currently, only four companies of...
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