Retirement specialist Just Group has introduced a temporary money back guarantee feature on its long-term care products to ease the burden on families arranging care provision amid Covid-19.
Under the changes its immediate needs annuity products will return the total premium less any income paid should the customer pass away within 12 months of the policy inception date.
The firm will also write to advisers who purchased a long-term care product for their clients last month to offer this guarantee.
Immediate needs annuities pay out a guaranteed income for life to help cover the cost of care fees in exchange for a one-off lump sum payment.
Stephen Lowe, group communications director at Just, said: “Arranging residential care has been made even more challenging for families with loved ones in urgent need of support because of the coronavirus.
“Just is reducing the financial risk families are facing by adding these money back guarantees for all customers using our care funding products.”
Mr Lowe told FTAdviser the company decided to offer this guarantee after finding many clients were worried about the level of financial exposure which comes with purchasing care solutions.
He said: “This new feature has been received well by advisers. Sometimes clients have no other choice but to fund long-term care and this often requires the client to invest upfront which is why we have put protection in place.
"If the worst does happen, they have a guarantee that their money will be returned.”
Last month (April 8), Just temporarily suspended the requirement for advisers to submit a full GP report for their clients before providing a guaranteed care funding plan quote, with the company instead using information provided on its care fees plan questionnaire to underwrite the policies.
The group said this would help ease pressure on GPs as well as advisers and clients during the lockdown.
amy.austin@ft.com
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