As we and our members help increasingly more client families fund their care fees, our company is finding that we are coming across an increasing need to double check the existence of previous, old-style pre-funded long term care insurance policies. Hence, the introduction of our Pre-funded Policy Cross Checking Service.
These policies were at the height of their popularity during the 1990s and were funded either with regular monthly or annual premiums or as a single one-off lump-sum.
In common with other forms of protection, most policies were bought by relatively young, healthy people for reassurance, and in the hope that they would never need to claim.
Care Fees Planning believes that now, more than two decades after they first became available, some families may potentially be paying for care fees for family members in their mid to late 80s or older, unaware that their relative might have already taken some steps to pay a part of their care cost.
The problem could occur when no one apart from the policyholder knew about the existence of pre-funded policy. If a policyholder subsequently developed dementia after establishing their plan, some might not remember anything about their policy now.
Even if dementia isn’t the primary reason for care, a policy bought with a single premium some twenty-plus years ago might not be the main point on the policyholders mind. So, if their children and or their attorney never knew about the plan’s existence, it would possibly not occur to them to investigate further.
This could mean that policyholders in care now are entitled to claim, but because no one knows they established a plan some time ago, its benefit remains hidden and not put to good use. It is because the policyholder is already one-step removed from the process (and also possibly lacking mental capacity) that the likelihood of overlooking these policies occurs.
Even in the closest of families knowledge about these plans is rather limited, as it seems that very few of the people establishing them informed somebody else (aside from their spouse, who might or might not have passed and/or remembered about the policy).
In an attempt to help these families fund their relatives care better and ensure that policies will not be lost and unclaimed, Care Fees Planning has pioneered a process and is working with the product providers to apply a much easier universal course of action.
Until this is in place, you have the reassurance that your Care Fees Planning membership will include Pre-funded Policy Cross Checking Service as a routine part of their procedures when examining your immediate funding options.