By Rachel Williams Age Concern is launching two long term care products developed in conjunction wit...
By Rachel Williams
Age Concern is launching two long term care products developed in conjunction with Age Concern Financial Partnerships and CGU.
The move comes with CGU revamping its own LTC range, replacing its Wellbeing and its Continuing Care Plan with a pre-funded and an immediate needs product.
While the new Age Concern plans, Future Care and Immediate Care, are structurally similar to the CGU products, both groups were keen to design products that recognised the needs of the elderly and are IFA-friendly, offering specialist support and training for advisers wishing to sell LTC insurance.
Sandy Johnstone, LTC strategy manager at CGU, said that along with an increase in annual maximum benefit and the removal of policy fees, rates have also been reviewed.
He said: "The overall effect of this has been substantial cuts on a range of rates - over 20% in some cases. We aim to be competitive on every case offered."
Peter Gatenby, general manager at ACFP, added: "If legislation changes and the adviser and the client decide that the client does not need as much cover, CGU has committed to reviewing their cover and reductions in cover can be arranged with a refund of part of the single premium. Or if the need arises, clients can arrange more cover without any underwriting."
One of the key changes to the pre-funded plan is a reworking of ADL definitions. In the past, to fail an ADL the individual needed to fail it on every occasion, which Gatenby said made it hard for people to claim.
"There could be many things that a policyholder could do once or twice in a day, but not do consistently."
Under the new plan, the ADL only needs to be failed on most occasions.
Some of the ADL definitions have also been changed, in particular the washing and mobility definitions, to make it easier for policyholders to claim. Under the washing ADL, policyholders only need to prove that they cannot wash using a bath or shower, rather than 'by any other means'.
On the mobility ADL, 'the ability to move indoors from room to room on level surfaces' has had the 'level surfaces' caveat removed allowing policyholders to qualify when they can no longer use the stairs.
The plans are also being backed up with a complementary Age Concern Helpline.
"This recognises the fact that people need support before they claim," said Gatenby. "The earlier people get the advice, help and assistance they need, the better."
Johnstone said that it was important to remember the 'care' in LTC insurance.
"There is an expectation from people who buy LTC that they will have access to a wide range of advice and support," he said.
