Norwich Union and Age Concern have jointly launched a new long term care plan, which pays a benefit ...
Norwich Union and Age Concern have jointly launched a new long term care plan, which pays a benefit on the failure of just one activity of daily living (ADL).
Policyholders are entitled to 25% of their annual benefit on the failure of one ADL, so if covered for £10,000 a year, £2,500 would be paid towards assistive devices.
By reducing the number of ADLs which need to be failed, more people are able to resume a normal life at an earlier stage, according to Chris Ellicott, technical manager at Age Concern.
He said: 'If people want to stay at home, then the failure of one ADL clicks in at an early stage. With the policy you could buy a ramp or a rail making it possible to carry on with normal life. It means you can stay at home for longer and it keeps you mobile.'
Owain Wright, head of the Care Funding Bureau, welcomed the launch: 'The failure of one ADL is good, the narrower the ADL the better the plan.'
The product, Future Assured offers three types of cover: blue, silver and gold. With the gold plan, 100% of the benefit is paid on the failure of two ADLs. The plan also allows clients to obtain escalating benefits with level regular premiums and to choose whether to receive the benefit in cash, care or a combination of both.
Sandy Johnstone, retirement and protection strategy manager at Norwich Union, said: 'This unique feature will be of tremendous help to the customer and a key selling point for IFAs.'
