In July 2011, the Dilnot Commission on Funding of Care and Support published a report, Fairer Funding for All. The report made a number of recommendations but chief among these was a call for a lifetime cap on care costs. If this recommendation is adopted, such products would enable clients to insure the first £35,000 of care costs.
However, only 17% of advisers thought that it was likely that the proposals would be adopted according to the Defaqto research.
Defaqto has published a paper on Long Term Care which outlined the key issues currently affecting the sector including the possible impact of the Dilnot report.
Ben Heffer, insight analyst for life and protection at Defaqto, said: “If the government adopts Dilnot or similar proposals, it stands to open up the product market and offer clear product sales opportunities for advisers.
“However, the lack of products is not the only problem within the long term care insurance market. Our research also showed that 61% of advisers do not advise their clients on long term care for a variety of reasons.
“The product market is poorly served with just a handful of plans to choose from but, if the long term care market is to flourish, greater commitment from the adviser community is also required.
“The purpose of the paper is to demonstrate the need for long term care insurance and to highlight the opportunities for advisers. The need exists now and advisers are uniquely placed to add value.”
