8 - Long term care

Question 1

Who is the regulator for long term care?

Answer 1

FCA

Question 2

What is long term care and when is it required

Answer 2

Required when individual becomes ill or suffers disability and unable to carry activities of daily living (ADLs)

Question 3

What nhs funded nursing care is available

Answer 3

Individuals assessed as needing care in a home are entitled to nursing care allowance which is non means tested and tax free

Question 4

What Act requires individuals with savings to pay for its own care

Answer 4

Care act 2014

Question 5

What is the age for free prescription drugs

Answer 5

People over 60

Question 6

What is the personal expense allowance

Answer 6

£28.25 per week

Question 7

Who can claim attendance allowance

Answer 7

If pay for own care and need help with personal care and or supervision

Question 8

How long does a local authority have to apply means tested benefit rules

Answer 8

6 weeks

Question 9

How is tariff income calculated for ltc support

Answer 9

Savings - lower threshold /250

Question 10

What income/savings is excluded for me and testing for Ltc

Answer 10

Personal possessions

Surrender values of insurance bonds

Question 11

In what circumstances is the home excluded from means testing for ltc

Answer 11

If partner, lone parent or relative who is over 60 or under 18 or incapacitated lives there

Question 12

How could couples avoid value of home being taken into account

Answer 12

Change ownership to tenancy in common and bequeath share to children to benefit surviving spouse

Question 13

How long is an individualks home is disregarded for in LTC

Answer 13

12 weeks

Question 14

What is the threshold for assets and personal income for individuals so local authorities cannot force them to sell home?

Answer 14

£23,250

Question 15

What is deliberate deprivation

Answer 15

Transfer of assets to reduce capital which is illegal and would result in notional income being used anyway

Question 16

What are the 5 different types of long term care plans

Answer 16

Family care
Professional care
Care at home
Care in care home
Sheltered housing, extra care housing and close care

Question 17

What is care in care home turn into generally

Answer 17

Normally temporary but can turn into long-term residence

Question 18

What is generally the issue for most common care at home

Answer 18

Frail elderly or dementia

Question 19

Long term care insurance (4 types)

Answer 19

• Immediate need plans (lump sum cash)
• Future need (pre-funded polcies)
• WOL options (If part of sum assured pays early if life assured meets definition of care)
• Equity release

Question 20

What are immediate need plans aka

Answer 20

Impaired life annuity

Question 21

How do immediate need plans work

Answer 21

Single payment when need care in return for regular tax free payments to home

Question 22

How long is the cancellation period for immediate need plans

Answer 22

There is none - but 30 day cooling off period

Question 23

What is the care provider called that covers all care agencies in UK

Answer 23

Care quality commission

Question 24

Why might deferred care plans be better suited to some?

Answer 24

Cheaper then immediate plans - “peace of mind product”

Question 25

What are the two pre-funded policies

Answer 25

Traditional insurance
Pre - funded investment-linked policies
Care cash plans

Question 26

What are the 2 types of equity release plans

Answer 26

Lifetime mortgage and home reversion plan

Question 27

What is a viatical settlement

Answer 27

Sale of an existing life assurance policy by terminally ill person to an intermediary