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Secured Lifetime Care

The Secured Lifetime Care plan can help if your client has the financial resources to pay care fees, but would like to limit their financial liability. It can be appropriate if your client is already suffering from physical or mental disability and is either already receiving or about to receive care. 

Your client must be aged 60 or over and be receiving care because they need assistance with everyday tasks, or need constant supervision for a condition such as dementia.

Benefits and options

As long as your client is receiving care, we pay the long term care benefit at the end of a chosen deferred period. The client can choose a deferred period which is one, two, three, four or five years from the date the plan starts.

The maximum amount will equal the amount paid for care each month. The minimum benefit is £200 a month. We can increase the benefits before or after the end of the deferred period, but we would consider the individual's health before confirming the terms. There are no policy exclusions on the benefits.

There is no surrender value either before or after the benefits become payable.

Inflation protection for the benefits

Your client can choose from different options before the plan starts. The care benefits can have:

  • yearly increases at a fixed rate between 3% and 10% in increments of 1% compound each year, or
  • yearly increases in line with the Retail Prices Index, or
  • yearly increases of 2% more than the increase in the Retail Prices Index

Your client can also choose which month of the year the annual increases will take place, to fit in with any arrangements already in place with care providers. The increased rate applies for the full month in which the benefit goes up. We will make the increased payments automatically. Your client can also choose a level benefit plan.

Payment options and legal representation

Payment is by single premium only. The minimum single premium is £5,000.

If your client is unable to handle their own affairs, a legal representative can act on their behalf.

Like any financial product, there are benefits and risks involved – please consider them all before recommending our Lifetime Care Plans to your clients.

It’s been designed for clients who:

  • Are suffering from a physical or mental disability and as such are currently receiving, or are about to receive care.
  • Want to have the peace of mind that all or part of their care costs are covered for the rest of their life.
  • Are able to pay some of their care costs themselves and as such wish to defer payments at the start of the plan.
  • Want to have their benefits paid tax free directly to a registered care provider.
  • Would like the option to add inflation-proofing benefit options to the plan at an additional cost, to ensure annual increases to monthly benefits.

It’s unlikely to be suitable for clients who:

  • Are not yet ready to enter long term care.
  • Require a guaranteed payment to be left to their estate upon death.
  • Do not have another means of paying their care costs during the deferred period.
  • Are unable to make up any shortfall in care costs over and above the monthly benefit.
  • What you need to think about:

    • Will the Lifetime Care Plan cover your client’s monthly care costs?
    • Does your client have the means to make up any shortfall in care costs?
    • Will the payments from the Lifetime Care Plan affect your client’s entitlement to any state benefits?
    • Does your client understand that the total benefits paid may be less than the amount used to buy the plan?
    • Does your client have any tax liabilities to address?
    • Does your client understand that the Lifetime Care Plan has no cash in value?

    Possible alternatives:

    • Local authority deferred payment scheme
    • Equity Release
    • Investments or cash deposits

    Useful links and documents

    Confidential Quotation Request Form
    Lifetime Care Charter
    Who pays for long term care guide
    Online indicative quote form

    You can find our full range of Immediate Lifetime Care documents and literature in our document library

    We've built a set of useful tools to help you in the long term care market:

    Comparison tool
    Shortfall calculator

    Business support

    Our dedicated team is here to help you with existing and new business queries.

    Call us on:

    0800 015 8649


    Contact us

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    WA05122 09/2017