The qualification is launching in April and will be assessed electronically.
The prospect of funding long-term care is of increasing concern; average annual nursing home costs in the UK are now estimated at around £24,000 a year for full-time care.
Mark Roberts, head of faculty – financial regulation at ifs, said: “While many will trust the value of their property, their pension plans or other investments, it is important for them to realise that the costs of Long-Term Care could substantially reduce their estate.”
He added: “The alternative to ‘spending the kids inheritance’ is Long-Term Care Insurance. Such policies will ‘pay out’ when the insured can no longer perform a number of daily functions (e.g. washing, dressing, food preparation) without assistance.
“LTCI can allow the insured to decide where and how they are cared for, leaving income and assets intact and protecting both their own independence and their family’s inheritance. The market for Long-Term Care Insurance products is likely to grow and advisers need to undertake appropriate training.”
A part of the FSA’s regulatory requirements is that those advising on Long-Term Care Insurance products must undertake appropriate training.
LTCI advisers assessed as competent at 31 October 2004 may be ‘grand-fathered’ at that date for two years (until 31 October 2006) by which time an individual must have undertaken appropriate training in LTCI.
Dean Mirfin, business development director at Key Retirement Solutions, said: “If this is a market that brokers want to get into then it’s not just the exam that’s a must, it’s essential to have an extensive overall knowledge.”
