Protection Topic 10 – Introduction to long-term care insurance

Question 1

Long-term care insurance (LTCI) is

Answer 1

a method of funding this level of care, where a lump sum or monthly/annual premiums are used to pay for future/immediate cover.

Question 2

• Residential care

Answer 2

in a long-stay home for elderly ‘frail’ people rather than ill. Provides social care not health care and is privately funded or funded by local authority

Question 3

• Sheltered accommodation

Answer 3

independent living with privately owned or rented accommodation with someone looking after the individual

Question 4

• Social or domiciliary care

Answer 4

in one’s own home with a carer

Question 5

• Nursing care

Answer 5

– in a nursing home or hospital ward

Question 6

• Intermediate care

Answer 6

short-term care/treatment in a home that is for no longer than 6 weeks and avoids any time spent in hospitals, normally free of charge

Question 7

• Replacement and respite care

Answer 7

limited-service period where the carer will be able to have some time away and take a break, and another carer will take their place

Question 8

The local health authority is required to complete a needs assessment for anyone who requires attention. There are 3 parts to this process:

Answer 8

• Assessment of needs and circumstances
• Identification of needs that should be met by the local authority or the NHS
• Financial assessment to confirm eligibility or seek for local authority support

Question 9

Pre-funded LTCI policies:

Answer 9

• Bought before customer needs help
• Can be set up as pure protection or investment bonds

Question 10

Immediate care/immediate policies:

Answer 10

• Bought at the point of care required
• Investment-based products
• Usually a form of impaired life annuity
• Provide regular income in exchange for a lump-sum payment

Question 11

Main aims of care act 2014:

Answer 11

• Ensure physical, mental and emotional health of the person being cared for and their carers
• Create a clearer, more consistent and fairer care system
• Establish a system that delays and prevents the need for people to receive care and support, putting more emphasis on local authorities
• Increases involvement and control for those who receive care
• Changes to the system of charging for care