Partnership has suspended sales of the last-remaining pre-funded long-term care product on the market.
The company was the last business in the UK still providing pre-funded long term care insurance products, where customers make an up front payment for a policy that pays out if they go into a long term care arrangement.
‘No one wants to pay for a product they may never use,’ said Chris Horlick (pictured), Partnership managing director of long term care.
‘We had very poor take-up for a product that is only of use if you go into long-term care…sales were absolutely minimal and there seemed no point carrying on.’
Horlick said Partnership sold just 21 pre-funded policies last year. He said the product will not be completely removed until after the government’s long-term care commission makes its policy recommendations next year.
‘We don’t know what will come out of this long-term care commission. We want to keep it on the shelf until we know whether there are any proposals that have some relevance to pre-funding,’ said Horlick.
Tomorrow minister of health Andrew Lansley is expected to announce a four-member long term care commission that will consult over 12 months with the care industry before delivering policy proposals a year after that.
Partnership director of corporate affairs, Jim Boyd, said: ‘There have been so many talking shops but now we know we will finally have something concrete and we will know how and when people are expected to fund their care. These uncertainties have been big barriers to the market.’