Help is at hand for intermediaries still unsure about long term care (LTC) regulation and planning, ...
Help is at hand for intermediaries still unsure about long term care (LTC) regulation and planning, following the launch of The Care Funding Bureau.
The IFA aims to remove the complexities associated with LTC, according to Owain Wright, head of The Care Funding Bureau.
He said: 'Many IFAs do not know the LTC market place. With regulation approaching, they have three choices: get up to speed on LTC, give poor advice, or refer clients to a specialist service. Choosing the third option, IFAs know good advice is being given and they can retain their client. We give advice on LTC and then pass the client back.'
LTC is an area often neglected by IFAs, but according to The Care Funding Bureau, more than 25% of people aged over 65 will require care while only one in 20 understand the financial implications of requiring care.
Wright added: 'I have seen 80 and 90-year-olds virtually bankrupted by this problem. It used to be said that buying your house was the biggest financial commitment you would face, but the average monthly cost of care is more than four times the average monthly mortgage payment. There is a real need for simple clear advice people can access, understand and act upon, and it is up to the financial services industry to offer some clarity in what is clearly a complex issue.'
As LTC regulation approaches, it will become more difficult for IFAs to skirt around the issue of LTC. Wright said: 'The area is a minefield and the law has some notable loopholes that can be positively exploited if the right advice is taken. I have a long list of people who have been inappropriately advised. In addition, the sheer volume of red tape and bureaucracy embracing long term care policy has led to widespread confusion.'
