The Pension Annuity Friendly Society is relaunching its flexible care account this year to fill gaps in the prefunded long-term care market following the withdrawal of other providers.
The account, which was set up last year, combines insurance and investment elements operating independently. It is designed to build a fund towards some initial care requirements, with nursing care insurance to pay for more expensive care.
PAFS says PPP and Norwich Union's withdrawal from the market last year left IFAs with a shortage of products to offer and it intends to include some of the features previously available with other products.
Millfield Care Partnership adviser Nicky Cave says PAFS is looking at bringing the product into line with the attendance allowance definitions, which would mean the provision of residential care as well as nursing care, and is considering monthly benefits rather than just a lump sum.
Cave says: “It will put the prices up a bit compared with the first product launch, but I think most people would like to spend the extra knowing there is a better chance of getting a payout.”
PAFS general manager Mike Douglas says: “We are always investing in product development and, in a new market like this one, perfecting the flexible care account will be an iterative process.”