IFAs are leading the way in the sale of long-term care policies, accounting for more than 90 per cent of the 30,000 plans sold, according to a report from market analysts Laing and Buisson.
The annual report, Care of Elderly People Market Survey 2001, says growth in the industry has been held back by continuing uncertainty of the Government's plans for funding. But now the Government has finalised its plans, the report says the market is set for a major boost to sales.
Voluntary take-up of LTC insurance remains small compared with the potential customer base of people at risk of needing care and who can afford the premiums. There are also difficulties with public awareness and appealing to younger people who are not motivated to invest in a product that provides benefits at the end of life.
The report says: “The Government's decision to fund nursing care only out of taxation, although disappointing to many, set the scene for a major boost to LTC insurance sales by promising to reduce the cost of nursing home care to self-payers, which is the most expensive risk covered by LTC products.”
PPP Lifetime Care product development manager Mike Whittaker says: “There is a greater need for IFAs to be more interested in LTC insurance. There are signs, though, that this is happening already.”