What is long term care?
Long term care is needed when a person becomes ill or suffers a disability that makes them unable to carry out their activities of daily living, with the probability that this disability will continue over the long term. Usually, but not always, it is the elderly who require care over the longer term. This is typically caused by either increasing frailty due to ageing or the chronic aftermath of acute conditions such as a stroke or a fall, or severe arthritis.

Long term care can also be required if a person is mentally impaired. The most common form of impairment for elderly people is dementia, and a common form of dementia is Alzheimer's disease. A person suffering from dementia will need personal supervision and assistance to carry out normal daily activities.

The care required can take many forms, from simple domestic assistance to daily medical help and medication.

Care may be provided in a care or nursing home or in the person's own home

The need for long term care plans
We are all living longer. It is common to live into the 80s and 90s. You may need to think how you would cope financially if you need help in looking after yourself or your partner, in years to come.

It used to be simple. You worked for 45 to 50 years, retired at 65 and expected to have five years in retirement. If you became too ill to look after yourself, then your children and grandchildren, or the state, would take care of that. With smaller families, and the cost of living meaning both partners need to work, care from the family is less likely.

There are two types of cover available.

Protection Based
These are regular premiums which pay out if care is needed, but do not have any value and do not pay out upon death.

Investment Based
These are linked to unit trusts and can be used to cover the period of care and pay out upon death. The value of the fund will depend on how the investments perform.