'World-first solution' to protect against rising costs of later life
VitalityLife has announced that ‘Dementia and FrailCare Cover' will now be offered to customers at no extra cost as part of Serious Illness Cover (SIC).
Aimed at protecting people against the rising costs of later life care, the policy will also provide members with protection for a range of degenerative later life illnesses after the initial expiry of their SIC product.
VitalityLife's ‘Dementia and FrailCare Cover', which the life insurer is calling a ‘first for the insurance market', will make a severity-based pay-out following the deterioration of health in later life to protect assets, such as homes, belonging to the individual and his or her family.
The cover kicks in immediately following the end of term of the SIC, and will effectively continue as a whole of life benefit. The benefit amount will be equal to 50% of the remaining SIC benefit amount, with a cap to the overall benefit of £100k.
For accelerated life and SIC polices, ‘Dementia and FrailCare Cover' also includes a funeral benefit equal to 10% of the remaining life benefit amount, subject to a cap of £10k.
"Most people can expect to live longer than previous generations," Herschel Mayers, CEO of VitalityLife and VitalityInvest. "Vitality's unique approach to encouraging positive behaviour change has helped our members reach later life in better health.
"But in spite of this we cannot ignore the increasing prevalence and impact of conditions such as dementia and frailty in our society today," he continued. "So far, the insurance industry hasn't done nearly enough to recognise this."
According to Alzheimer's Research UK, one million people in the UK will have dementia by 2025 and this will increase to two million by 2050.
"This is a world-first and addresses one of the most significant problems in the protection industry, and society more broadly, by helping people retain their dignity and independence during what can be a vulnerable stage of their life," said Mayers.
With child cover enhancements
£570 a month benefit
Asks Alan Lakey
For mortgage and later life advisers