Care home insurance

[Deleted User]

The proposals under the Dilnot report included something about having care home insurance as well as a cap on care fees.

Do such insurance policies already exist?

Presumably the younger and healthier you are when you take one out, the cheaper it is and more affordable it may be to continue it?

If the Dilnot proposal or something like it does go ahead then policies may be much more expensive than if one is bought beforehand?

huckster

Just googled and found a few companies that appear to offer this. I should imagine that this form of Insurance many become more popular, but may change when the care fees are capped at £35k.

It is obviously a gamble, as not everyone will need a care home and there may be a move by government to offer more help for people to stay in their own homes. You could therefore pay Insurance premiums for years, without needing a care home and not receiving any financial help towards any help you need to stay in your own house.

A relative of mine, had to go into a care home for the last 3 years of their life, as they could not cope at home even with help. I think the cost was over £30k per year, met from life savings. But before that, they had to also pay for a home help, which was organised through the local authority. I think the cost was something like £10 per hour and they did basic things, like hovering, shopping, making sure the house was safe etc. It was costing more than £50 a week, met out of pensions. If you have any money or earnings, the local authority/government won't help with this.

[Deleted User]

You raise some very good points. It is a gamble as to whether anyone taking out such insurance would ever need it but of course that is the same with health insurance too.