Chapter 8 - Long Term Care Insurance Flashcards
In a local authority, financial assessment for assets that exceeds lower limit of savings threshold how is a tariff income assessed
For every £250 over the lower limit which is £14,250 in England, £1 is paid as tariff income, E.G, £8000 over the limit would equal £32 per week in tariff income.
After a transfer for someone of state pension age to minimise inheritance tax liability if the person then had to be assessed for local authority funded care, two years later, how would they treat his earlier transfer?
It would be ignored as it’s generally thought if the transfer takes place more than six months before the carers needed that will be ignored from a means test
When paid directly to a registered care provider, how are payments under an immediate needs long-term plan taxed?
Free of tax
How are Payments under an immediate needs plan, made direct to a policyholder taxed
Taxed as a purchase life annuity
Describe personal expense allowance
An allowance set by the government, which leaves people with a sum of money to cover their own personal expenses, such as newspapers and toiletries
When in residential care and now requiring to be supervised by a registered nurse, how much would the client be eligible for and how would that be paid?
The care home will receive a contribution of £209.19 per week towards the cost of care
A couple, one with deteriorating health, currently live in their own home. If the one who deteriorating health needed to move into local authority, funded care, what would happen to the home?
The property will be disregarded completely because the spouse continue to live there
What are the typical ADLs?
Continence, dressing, feeding, mobility, transferring, washing
Continence refers to bodily functions such as bowel and bladder management
Transferring refers to the ability to move from bed to an upright chair
What are the two types of lasting power-of-attorney
Health and welfare, property and financial affairs
Who can carry out a care assessment on an individual
The local authority or a specialist provider
How many NHS funded nursing care bones are there in England for new claimants?
One
What is domiciliary care?
Care at home
What type of investment insured against the risk of having a client living longer than expected?
An annuity
Explain an equity release, rollup lifetime mortgage
This is an arrangement where the clients borrows money from the bank, which is secured against the home, with the interest rolled up and payable on the clients death
The FCA defines long-term care insurance as essential, providing benefits to policyholders one through deterioration of health they…
Cannot continue to live independently without assistance
Describe an immediate needs plan
Made it needs plans or immediate needs annuity, is essentially an annuity for those in poor health and already need care who may be about to go into nursing homes.
Essentially, the annuity works like any other annuity whereby it is but with a lump sum and the monthly payments are ongoing until the clients death. They can be level or index-linked and a guarantee can be selected set of the capital sum paid at the start. Will it be lost if the annuity ends early via the death of the applicant. As these are usually for people in vulnerable conditions, they will be commonly used through a type of power-of-attorney
How are payments under an immediate needs plan, Madara to the policyholder taxed
Taxed as a purchase life annuity
What is the name given to a settlement I will existing life insurance policy by terminally ill person to an intermediary
Viatical settlement, as this is an immediate cash benefit which is expressed as a percentage of the expected value of the policy which is to be paid on death.
What is disregarded due to the care act of 2014?
Insurance or commonly known as investment bonds, are still disregarded when taken into account for care assessment purposes
Local authority may assess an individual as being able to meet the full cost of their own care if the person is notional and actual capital is an access of how much
£23,250
What is the rule of the certificate provider, when setting up a new lasting power-of-attorney?
To make sure the donor understands the LPA, and is not being coerced
Someone with loss of mental capacity and is in long-term care without an enduring power-of-attorney or lasting power-of-attorney in place Howwood that clients son take over the financial affairs
Apply for a deputyship order from the court of protection
Brenda aged 68 self funds, her own care fees, as a result, what benefits can see, expect to receive
Attendance allowance
