Mrs Roberts is a 65-year old widow. She is in good health, but wants to make sure she can still leave an inheritance for her family should she need care in a nursing home. The nursing home she would choose to enter should she need it currently costs £550 a week. Her property has been valued at £180,000 and she has £35,000 in savings. She also earns a net annual income of £11,000. What are her LTC insurance options?
Caroline Spiers, Eric Rawlins Insurance Mrs Roberts should consider long term care (LTC) insurance because her assets amount to well over £19,500 – the current ceiling for local authority assistance. Unless she insures herself, the fees will soon reduce both her savings and the eventual proceeds from the sale of her home. First, a detailed analysis of her income and expenditure has to be made. Is her income increasing or level? How much disposable income does she have? How much of her capital could she use to pre-fund her LTC? Next, the potential shortfall needs to be calcu...
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