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  • FIRST POST
    • patel007
    • By patel007 17th May 17, 10:18 PM
    • 739Posts
    • 260Thanks
    patel007
    Care Home Fee's Insurance
    • #1
    • 17th May 17, 10:18 PM
    Care Home Fee's Insurance 17th May 17 at 10:18 PM
    Hello. I was looking on the net for anything that remotely resembles insurance for care home fees, but found nothing.

    Me and the Mrs have a life insurance that will pay out on the first death, and this runs for 30 yrs I think as long as we keep up the monthly premiums for both of us.

    We are both working, in relatively good health over 50 yrs of age and worried re care home fees may eat into our savings/investments and want an insurance for this that will pay out money if one of us has to go into a care/nursing home.

    Are there any companies that provide this type of thing and approx what cost per month for both of us for cover and lets say, 100k please? (We are worht a few quid inc our home, rental properties and cash, want to be prepared as much as possible so our children and grandchildren are not burdened with CGT/IHT and the insurance payout will help ease the blow.
Page 1
    • Keep pedalling
    • By Keep pedalling 17th May 17, 11:10 PM
    • 3,563 Posts
    • 3,835 Thanks
    Keep pedalling
    • #2
    • 17th May 17, 11:10 PM
    • #2
    • 17th May 17, 11:10 PM
    AFAIK there are no such policies, but with an estate of getting on for £1.5M why are you worried about a piddling £100k?
    • csgohan4
    • By csgohan4 17th May 17, 11:14 PM
    • 3,766 Posts
    • 2,351 Thanks
    csgohan4
    • #3
    • 17th May 17, 11:14 PM
    • #3
    • 17th May 17, 11:14 PM
    If you get one, I would also like to know. Otherwise how can be in business?? What a silly business model where everybody claims
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Malcnascar
    • By Malcnascar 18th May 17, 7:34 AM
    • 1,144 Posts
    • 1,268 Thanks
    Malcnascar
    • #4
    • 18th May 17, 7:34 AM
    • #4
    • 18th May 17, 7:34 AM
    Potentially you may already have this.

    You say you have investments, whilst you dont say what they are, you do say you are both in your 50's. You dont say if you have income other than from your current investments. If you are not reliant on your investment income now then your strategy will be to invest for capital growth.

    You need your investments to grow by £100,000 more than your present aims and your objective to cover care home costs would be met. Simple.

    The harder task is to achieve that aim, and to determine the likely timescale to meet that aim. Insurance is about spreading risk. Your life policy is a bet between you and the insurer. Your stake is your premium. They bet you wont die and you bet that you will. If they are right they win, if you are right you win.
    It would be possible to develop a model for the insurance industry to cover care home costs.
    Such a policy would then set premiums to provide cover and profit for the insurer. Not all people would claim as would appear to be the case with the life policy you have which ends on first death, during the term, or in 30 years if neither die. Your motor policy works in a similar way. but it's term is a year.
    Why do few, if any, policies exist. I don't know but would speculate that the likely reason is perception. We know we can die at any time so cover the risk of premature death with life cover. With care home fees our perception is different. It's based on our experience, previous generations and our ability to pay. Wealth for many is relatively recent, mainly from home ownership and inheritance. Such wealth is not universal and with care home fees there is a growing tendency for those that "have" to resent those that "have not" appearing to get something for free.
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