Insurance arrangements that are put in place before the point of need are limited to some whole-of-life assurance plans that pay out a small percentage of the overall sum assured in the event of, for example, dementia.
Kenny says, while these help, they are not designed to meet the full need of paying for care.
He adds: “Solutions to meet the full cost of care shortfall and reduce the risk of an estate from being majorly impact by the cost of care, or worse still, running out of money, are met with an immediate needs annuity or deferred annuity.
“There are various ways the different insurers would deal with a cap coming in during the lifespan of current plans, with tailored new propositions ready to go if the cap does eventually come in."
Ima Jackson-Obot is deputy features editor of FT Adviser
