“’Industry Experts’ suggest Long Term Care Insurance is unworkable,” by Tony Mudd, Cover 

 

 

Quote:

“The real problem is not actually the design of a policy. As any adviser will tell you, it is about creating a need. Without demand, no adviser, however good he or she is, will be able to sell a protection policy and an LTCI is no different. Right now, the demand is, at best, limited and even though people are beginning to understand implications of social care costs they are also being told that the maximum extent of their personal contribution is £86,000. As keen as the Government are to see LTCI products developed, I don’t see them being keen enough to come clean with the public that it is only really £86,000 if you look like this. If you fall into this narrow category and are happy to let their local authority decide when, where and what type of care you will receive. Only when this changes or when the public become aware through experience or education, will LTCI be anything like viable.”

 

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

The UK struggles with private LTCI design and it faces the same fundamental problem we do. Demand! People don’t see the need because they’re convinced the government will provide. How? Somehow. But that fantasy is fast disappearing as higher interest rates and the inflation tax compel a rendezvous with economic reality.