informed choice

Pre-funded plans

This type of product is not currently available in the UK market, although it might become available again in the future.

You should check with your independent financial adviser to confirm the availability of a pre-funded long term care plan.

These long term care plans would pay the agreed benefit on the policyholder being unable to carry out certain activities of daily living.

The benefit could be paid directly to a nursing home or residential home, or to the plan holder to pay for a carer in their own home.

Activities of daily living

The activities of daily living (ADL’s) include:

Washing – being able to keep oneself clean

Dressing – being able to dress oneself

Feeding – being able to eat food that has been prepared

Transferring – one’s ability to transfer from a bed to a chair and vice versa

Mobility – being able to move freely around ones home

Continence – the ability to maintain personal hygiene

Mental impairment – such as Alzheimer’s

Payment of benefit could be triggered on the failure to be able to meet one, two or three of the above items.

The failure of fewer ADL’s would increase the cost of the long term care plan, because the benefits would become payable sooner and potentially for longer.

Benefit for Assistive Devices is also paid on the failure of an agreed number of ADL’s.

Apart from the monetary benefits, the care plan would also give the care recipient and their family access to a care support service that would provide support and guidance through all of the issues surrounding their long term care needs.

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