Topic 9 - Analysing and reviewing a client's position Flashcards
1
Q
All LTCI business is regulated as…
A
INVESTMENT BUSINESS. Even pure protection LTCI products are still regulated as investment business.
2
Q
If an individual is in need of immediate care, there are various basic checks to be carried out by the adviser to optimize the position:
A
- State benefits – make sure they are getting claimed by carer and cared for
- Local authority assistance – adviser can help total assets for LA assessment
- Health needs – do they qualify for CHC? Can they get contributions from the NHS?
- Property (ownership) – moving property from joint ten. To ten. In common?
- Property (other) – disregarded for the first 12 weeks, contact home and contents provider for possible terms amendment
- Council tax – entitled to a reduction?
- Joint accounts – consider splitting accounts for easier assessment
- Power of Attorney – consider getting this done before incapable
- Choice of accommodation – check if it is suitable and if the LA will provide it
3
Q
The following scenarios may require a review on existing long-term care provision:
A
- Change in marital status – home not assessed if one partner goes into care first
- Death and divorce – people who’s spouses die or divorce (and have assets willed or settled to them) will form part of the assessment for their own care
- Changes in client health
- Changes in need (including partial claim) – it is possible for people to recover, though for LTCI this is unlikely. The level of care may change though and the claim process is gradual, so less money might be needed or given based on the number of ADLs the client can perform upon policy review
- Client’s mental capacity – client must have full mental capacity or another family member present at the time of purchasing an LTCI product. If capable at purchase, capability reassessed upon claim
- Changes in legislation
- Moving abroad – If abroad and fall ill, must be in the UK to be assessed. Claims have to be then paid to an approved care provider. Situation can be reassessed if client falls under a different local authority
- Changes in taxation, investment conditions and inflation – care costs often rise more quicky than inflation so awareness of current economic climate is key
4
Q
Age UK
A
- National charity formed in 2009 – merger between Age Concern and Help the Aged
- Aims to help people make the most of later life and offers support services for various issues
- Finances, health and wellbeing is areas they help with
- Undertakes training and research, and ensures best interest of older people is covered by government policy
5
Q
Citizens Advice
A
- Has been in place since 1939 when 200 branches of the National Citizens Bureaux were opened by the government and run by volunteers
- In 1999 launched its self-serve website which is 24-hours
- Government funded and aims to provide ‘free, independent, confidential and impartial advice to everyone on their rights and responsibilities”
6
Q
Money and Pensions Service (MaPS)
A
- The Money Advice Service and 2 other orgs – the Pension Advisory Service and Pension Wise – were combined into one financial guidance body in 2018 and renamed to MaPS in April 2019.
- Consumer-facing side of this is MoneyHelper
- Independent org set up by the government and funded by a levy on the entire financial services industry
7
Q
Communications with the client is important in all circumstances, but more important with clients who are potentially vulnerable. Some areas to focus on when speaking to potentially vulnerable clients:
A
- Use a language they understand
- Explain concepts and words in a simple manner that they will understand
- Listen – respond to their actual questions
- Read basic body language
- Explain verbally, and in writing, the meaning of terms and words etc
- Write clear and concise reports and letters using plain English and good grammar
- Sound technical knowledge of financial matters and ability to answer common questions
