Long Term Care insurance has been growing in popularity over the years as more and more people need some form of care in old age. These policies can be taken out earlier in life and provide financial support if care is needed. Some plans can also be taken out by paying a lump sum if care is needed and no pre-planning has been done.
This type of insurance does not currently come under the regulation of the Financial Services Authority, although it is a fairly specialised area. However, this will change from 2004 when other types of product, particularly mortgages become regulated.
The Association of British Insurers has been concerned for some time regarding the potential for mis-selling of long term care insurance and has now introduced a Code of Conduct.
The Code stipulates that any insurance company offering long term care insurance policies must ensure that the advisers selling their contracts are competent to do so. In addition, the insurance companies' own staff must fully understand the plan and its relationship to the State benefits system.
The introduction of the Code has been welcomed across the industry and can only help protect consumers from poor advice, until regulation arrives in 2004.
To learn more about care in later life and the costs visit the Care Fees Adviser.com.