Long term care (LTC) costs can easily exceed £20,000 a year. Part of the cost will be met from avail...
Long term care (LTC) costs can easily exceed £20,000 a year. Part of the cost will be met from available income, the remainder being paid by running down lifetime savings and selling the home.
LTC investment bonds aim to top up the investor's income when LTC costs arise, while at the same time returning the original investment when the investor dies. The investor's estate is then protected against LTC costs so that the intended legacies to the children can be left intact.
LTC investment bonds generally cost between £20,000 and £30,000. The client must be able to afford to lose access to this capital and the investment income it generates for the rest of their lives, if the bond is going to provide the benefits the investor wants. Most investors are between age 60 and 70 when they start their bonds.
One of the latest design packages brings two separate insurance contracts together. The lump sum investment is split into two parts. One part purchases a single premium insurance contract to provide the LTC benefits, while the balance buys a whole of life policy to provide the required death benefit.
