Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

R05 > Chapter 8 > Flashcards

Chapter 8 Flashcards

1
Q

What are the 6 activities of daily living?

A

Continence
Dressing
Feeding
Mobility
Transferring
Washing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is long term care?

A

Long term care is the help provided usually to older individuals who are unable to carry out activities of daily living due to illness or disability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What sources of long term care exist? Name 3

A

Family
State assistance
Own resources used to fund care
Private plans can be put in place to provide long term care in future if needed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How many ADLs must an individual be unable to carry out before long term care insurance pays out?

A

Pre-specified number determined by the insurance they take out
The fewer the ADLs the “better” the insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What factors affect the need for long term care? Name 3

A

Age
Personal wealth
Family set up
Degree of disability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the 2 main regulators in the UK for financial services?

A

Financial conduct authority is the sole conduct regulator (previously FSA)
Share prudential regulation (making sure companies are financially sound) with the Prudential Regulation Authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the 2 main groups of long term care products?

A

Investment linked
Pure protection products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the different areas of state support for long term care?

A

NHS provided care
DWP benefits
Means testing criteria + application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the NHS responsible for with regards to long term care in different areas of the UK?

A

England, Wales and Northern Ireland -meeting the full cost of care where the individual’s primary need is health related
Scotland - cost of nursing care and personal care

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What happens if an individual needs health related long term care but the care is not provided in an NHS hospital ward?

A

Payments are made directly to care home providing nursing care
Payments not means tested and paid tax free

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the maximum nursing care rates in different parts of the UK

A

England - £235.88 weekly or £324.50 weekly if established before 2007
Wales - £201.74 weekly
Scotland - £111.90 weekly, personal care covered if eligible from 65 £248.70 weekly
NI - £100 weekly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What constitutes nursing care needs?

A

Care that must be given by a registered nurse as part of providing, planning or supervising someone’s care

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the personal expense allowance? How much is paid?

A

Set annually, currently £30-40 depending on where in the UK
Covers small, weekly expenses of the individual such as newspapers and toiletries
The income is disregarded when means testing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a local authority’s role when it comes to long term care?

A

Assess an individual’s care needs
Carry out a financial assessment to determine if any state support is available
Determine maximum state fee payments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does the Care Act 2014 state?

A

Individuals with savings must first use these to pay for their own care before turning to state support

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which guide tells local authorities whether and to what extent individuals provided with residential accommodation by the local authorities must contribute to the cost of care?

A

The Charging for Residential Authority Guide (CRAG)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What income types are included in the assessment carried out local authorities? Name 5

A

Income from earnings
Rental income
Private/employer pensions
State pensions and benefits
Pension Guaranteed Credit
Income from trusts
Dividends, bonuses and annuity income
Attendance allowance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What kind of asset types are included in the assessment carried out by local authorities? Name 5

A

Cash, deposits, savings
Equities at current market value
Properties in addition to main residence
Businesses
ISAs
Other investments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What types of income and assets are excluded from the assessment carried out by local authorities?

A

Council tax benefit
50% of pension income if spouse or RCP relies on this
Personal possessions
Pension funds
Surrender value of life insurance policies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

When is the value of the home disregarded when it comes to means testing for long term care?

A

Disregarded for first 12 weeks
After 12 weeks still disregarded if there is someone residing in the property who is:
The claimants spouse or RCP
Relative or family member 60 or over or under 18 or incapacitated
A lone parent estranged or divorced from resident

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Can a local authority force the sale of a house to fund care costs?

A

Cannot force sale of home to cover costs
Instead charge is place on the property which must be repaid on the death of the individual requiring care
Known as deferred payment plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the maximum payable for care home fees? What happens when this is reached?

A

Currently no cap
But cap being introduced in 2025 to limit to £86,000 all care excluding food, energy bills and accommodation
Once cap is reached ongoing care paid by local authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

How much does long term care cost?

A

£10-£30 an hour
£60k for residential care and £73k in a nursing home annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

When is care provided to an individual based on how much in savings/investments they have

A

Saving above a certain amount - no assistance given
Below a certain amount - full assistance given
Between these amounts - some assistance given

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What is the upper and lower threshold for investments and saving in relation to whether an individual will be entitled to care?
England - £14,250-£23,250 Scotland- £18,000-£28,750 Wales- £24,000 for care at home £50,000 for care in care home (both upper and lower threshold) Northern Ireland- £14,250-£23,250
26
How much tariff income must an individual pay for LTC?
£1 for each £250 between lower and upper threshold
27
What rules exist around deliberate asset deprivation for means testing of LTC?
An individual cannot deliberately transfer their assets to maximise state support If a transfer was made to prevent its inclusion in means testing, it will be treated as if the individual still owns it
28
What is sheltered housing care? What is extra care housing
Sheltered housing is usually made up of a number of flats available for purchase within a complex Warden on site 24 hours a day in case of emergencies Emergency button to summon assistance Often public areas Extra care housing - the same but rented instead of buying
29
What is closed care?
Homes built on the same site as a care home with easy access to facilities if required
30
What are the 5 types of LTC insurance
Immediate needs Deferred care Pre funded Care cash plan Equity release
31
What is an immediate needs LTC policy?
Policy for someone that already has a need for care but does not want to see all their assets potentially sold to cover care costs Instead hand the provider a lump sum in exchange for a regular income
32
How is the amount paid for an immediate needs policy assessed?
Provider will assess mortality risk based on life expectancy Income will be higher than most annuities as the individual has a reduced life expectancy
33
Is an immediate needs policy paid tax free?
Free of tax if paid directly to the care home If it is paid to policy holder treated the same as the income from a purchased life annuity: Capital component - this component classed as return of capital and paid tax free Income or interest - the remainder of the income is classed as saving income and taxed at the individuals relevant rate of income tax
34
What additional features can an immediate needs policy have?
Increasing benefit payments Income can be index linked Guaranteed period- paying lump sum back to estate if individual dies in guaranteed period
35
Can an immediate needs policy be cancelled?
Has 30 day cooling off period Once up and running cannot be cancelled or premiums returned
36
What is a deferred care policy?
Variation of immediate needs policy Lump sum is used as a premium but income does not start to be paid immediately For individuals who can afford initial care but require income once these funds are used up Cheaper premiums
37
What is a pre-funded LTC policy and what are the 2 types?
Pre-funded is for individuals who do not currently have needs but are concerned about costs if they need it in the future Form of insurance policy 2 types: Traditional Investment linked
38
What is a traditional pre-funded LTC policy?
Policies that pay out a benefit if the policy holder is unable to carry out a minimum level of ADLs The number of ADLs is predetermined and chosen by the individual Fewer the ADLs the better but more expensive
39
What are the issues with a traditional pre-funded LTC policy?
May remain in good health and never claim on the policy No element of investment Therefore no return on premiums unless policy claim is made
40
What two elements does an investment linked LTC policy combine?
Single premium investment bond - invested into funds the policy holder has chosen and therefore has potential to grow and give investment return. Premium taken monthly from this plan (acts as feeder) Regular premium LTC policy - works the same as the traditional
41
Name 3 advantages of an investment linked pre funded policy over the traditional
Once claim is made, the bond is no longer required, so can be used for any purpose Investment growth potential Bond value is available in the event no claim is made Bond can be cashed in at any time
42
Name 3 disadvantages of an investment linked pre funded policy over the traditional
Further lump sum may be required as a top up to maintain insurance policy if bond surrender value is accessed Growth could be less than expected Value of bond could be eroded by withdrawals Premiums could increase
43
What is a care cash plan?
A hybrid policy Pays out income for a pre-set period and/or cash lump sum Benefits paid out if individual either fails a certain number of ADLs or develops a physical or mental illness associated with aging
44
What is equity release? What are the 2 types?
Many individuals asset rich in terms of house but cash poor An individual can release equity within their house without having to sell it Types: Lifetime mortgage or home reversion plan
45
What is a lifetime mortgage
Owner releases cash in their property through a mortgage Cash can be used to fund LTC Individual still owns 100% of their property, but lender has a secured legal first charge on the mortgage amount If individual defaults on loan, property value is due and available to lender Usually repaid on death or when house is sold
46
What is a home reversion plan?
Part or all of the individuals property is sold to a home reversion company Generates a lumps sum that can be used for LTC The individual can still remain in the property as long as they pay some rent When the property is sold the reversion company receives some amount
47
What is a viatical settlement?
Life policy sold to viatical company whilst policy holder is still alive to generate cash lump sum Policy usually terminally ill and permanent deed of assignment is used Viatical company becomes the assured
48
What are some key rules around viatical settlements? Name 3
Life office must be UK based Medical evidence of terminal illness required Regular premiums must still be paid Insurer would need to be notified of change in policy assured
49
What are the 5 stages of determining long term care needs?
What care is required and what are the costs involved Is state help available? What personal capital and income is available? What is the shortfall between what is needed and what is available? How can this shortfall be met?
50
What is a power of attorney?
A legal document, drawn up and agreed between two or more individuals: The donor who creates the power The attorney who is granted powers by the donor These powers may include the ability to make both financial and welfare decisions on behalf of the donor
51
What is a (basic) power of attorney and why did this lead to new ones being created?
The first type of power available Revoked if the donor lost mental capacity A new one could not be created as the individual did not have mental capacity to make a new one
52
What is an enduring power of attorney?
Designed to come into force when the donor loses their mental capacity Attorney can make property and financial decisions for donor, but none in relation to health and welfare When mental capacity is lost EPA must be registered with Office of the Public Guardian to activate powers
53
What are the two bodies that protect the rights of potentially vulnerable individuals?
Office of the Public Guardian Court of Protection
54
What is a lasting power of attorney?
Established by the Mental Capacity Act 2005 Individuals may still have an EPA (cannot be changed), which can run along side LPA Can replace EPA with LPA
55
When can an EPA decided to be revoked depending on if it’s registered?
Individual can decide to revoke an EPA at any time if unregistered If registered with OPG the permission of the Court of Protection is required
56
What needs to happen to revoke an LPA?
A deed of revocation needs to be signed by the donor
57
What are the 2 components of an LPA
Health and welfare Property and financial Both or either element can be included by the donor
58
When can an LPA be registered with the OPG?
Either when it is drawn up or later when it needs to be utilised
59
What forms are there for the LPA?
LP1F - for property and financial LP1H - for health and welfare powers
60
What are the 2 ways attorney powers can be granted? Explain these
Jointly and severally - attorneys can make decisions on their own or with other attorneys Jointly - all attorneys must agree
61
What requirements are there for the donor of an LPA?
Must be 18 or over Be of sound mind Have the capacity to contract
62
How is an LPA drawn up?
Usually carried out by a solicitor An LPA must be signed and dated by the donor, the attorney(s) and a witness Can also be another couple individuals to protect the donor Named person and certificate provider
63
What is meant by a named person for an LPA?
Individual selected by the donor and is notified when the LPA is registered with the OPG They have the right to object if they think the donor is being taken advantage of
64
What is the certificated provider for an LPA?
There is a “part B certificate” form within an LPA document This confirms the donor has understood the LPA and has not been pressured into it
65
Under what circumstances can an LPA be revoked?
Donor revokes the power Donor or attorney dies Attorney loses mental capacity Donor or attorney declared bankrupt
66
What happens if an individual has no powers in place when they lose capacity?
Then and application for a Deputyship Order must be sent to the Court of Protection for limited powers
67
What are council tax precepts?
Concept introduced in 2016/17 Allows councils to raise extra funds to meet cost of social care through additional council tax charges

R05 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions