Immediate needs plans differ on price

There are distinct variations in price between the four main immediate care plan providers, according to the Nursing Home Fees Agency (NHFA). An independent survey conducted by the NHFA, revealed price variations of up to 50% between plans.

Peter Fisher, an IFA at NHFA, believes due to such price differences, independent advice should always be taken when purchasing a policy.

He said: 'It is important for older people and their families to seek independent advice when considering this product. It could be said those companies offering only their own product through direct or tied sales forces could be a serious financial disadvantage for older people.'

The research looked at PPP lifetime care, Norwich Union, Pension Annuity Friendly Society and BUPA over a 12-month period.

It also showed 78% of cases were female, 52% lived in residential care and 47% in nursing homes. Just under 1% received care at home and on average applicants were failing three activities of daily living.

Fisher believes clients need to become better educated, but thinks some advisers are still not fully informed themselves.

'There is still a considerable amount of ignorance from IFAs on how care plans work. Care plans require IFAs to have a different perspective to financial planning,' he said.

Those running care homes should also be aware of immediate care plans, according to Fisher.

'One certainty is that care home operators, in a climate where receiving full fees is of paramount importance to their business, should be encouraging their residents to consider this option for meeting care costs,' he said.