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Lait suggests relaxing of rules on annuity purchase could revive LTC market

A Conservative Government could spell a boom for long-term care insurers as the party pledges to scrap the restriction forcing pensioners to buy an annuity by age 75.

Tory pension spokeswoman Jacquie Lait says if people have more control over their pension pot, they will not be forced to sell their house to pay for LTC costs. She believes people will be more likely to invest in products such as LTC cover.

But Lait has challenged the LTC market to design products that are cheaper and appeal to a wider audience.

She says: “Everybody knows annuities at the moment are not good value for money. It could almost be said they are being missold. We will do away with the requirement that everybody has to purchase an annuity with their pension pot by the age of 75 and one of the positive result of this will be people have a much wider opportunity to meet the costs of long-term care without having to sell their home.”

PPP Lifetime Care LTC marketing manager Paul Bennett says: “It is encouraging the Conservatives are seeing the need for people to insure but it has got to be combined with people understanding the need for protection. Whatever the Gov-ernment of the day can do to encourage, that is a good thing.”

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