Symponia has applauded the ABI's commitment to building long-term care (LTC) products but warned providers must consult with specialist advisers to ensure they are fit for purpose.
Today the ABI and the government launched a statement of intent to develop products suited to LTC funding for the elderly.
While Symponia welcomed the ABI's commitment to product choice and innovation, Janet Davies, managing director of Symponia warned of "smoke and mirrors" from the government.
In the statement of intent set out by industry and government, Care minister Norman Lamb said the reforms set out in the Care Bill will mean an end to people having to sell their homes to pay for care.
He said it will "provide the industry with the certainty it needs to develop products that can help people plan for their future."
Davies said: "If Norman Lamb really believes that the new proposals will put an end to elderly people needing or wanting to utilise the monetary value tied up in their homes to fund care, he is more misinformed than we thought.
"The development of newer, suitable products that fit the new system will get a resounding yes from every care fees planning financial adviser in the country. But and it is an important ‘but' - it is imperative that Aegon and the other providers consult with the people who know how this sector works; ie, those advisers with experience not only with Immediate Needs Annuity business, but the rare few who have a wealth of pre-funded knowledge, too."
She added: "The subject of planning ahead requires additional input and understanding. Counsel should be sought from the advisers who have real experience of the ‘old-style pre-funded market' and as the writer of over 500 policies, I include myself here. Symponia is ready, willing and able to pick up the gauntlet for product development. We will happily work with the ABI, Aegon and any others wanting to establish realistic, workable and affordable solutions.
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