Zurich Life  

Care fees planning: frail and faltering

Nikki Cave, managing director of Eldercare, said that premiums for a 60-year-old who wants to buy a £150,000 policy with Vitality would be paying £300 a month. She said: "At aged 85 you would have spent £85,000 on premiums

"The sort of person buying whole of life cover is buying it for a reason, and [activating this rider] would leave you with no life cover. Are you trying to leave some money for your children?"

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The situation is not helped when the cost of care is unpredictable, not just because a client does not know when or how long they will need care, but also because of how unpredictable the political situation is with regard to cap on care fees. It was proposed that there should be a cap on care costs of £72,000, and this was due to come into effect in April last year, but has been pushed back to April 2020.

Ron Wheatcroft, technical manager at Swiss Re, said: "I imagine the government will be looking to do more consultation because things will have changed in three to four years time and the cap may be increased."

Melanie Tringham is features editor of Financial Adviser