Old people

[Schuey]

Old people
65 +
What products can they buy to help cover their need to AVOID keep going to NHS on regular basis ?

IP - only if they are working. If they are not working cannot use this
CI - covers chronic illnesses. Might be expensive as they get older ?
Pre-funded LTCI - usually not sold in UK
Immediate needs LTCI - can buy this with single premium. Can you buy this product and use it even if you can perform all ADLs and are not mentally impaired ?
PMI - to cover acute conditions and covers indemnity basis

Would PMI + CI or PMI + pre-funded LTCI or PMI + immediate needs LTCI provide adequate provision to avoid having to use NHS on a regular basis and to decrease the burden on NHS ?
This is assuming policyholders 65+ can afford it ?

Can over 65+ buy IP, CI, LTCI, PMI ?

Thanks very much

 

[thaikashaikh]

above 65+ old people cover

Dear Shuey,

Aim of each product

Income Protection
Its aim is to provided regular income when one is incapacitated to perform work due to illness or accident

Critical Illness
Lump sum paid for chronic cases with multiple trigger points (performing procedure, certain degree of impairment of vital organs or both) but fixed benefit not indemnity so in essence cash for treatment plus something extra

LTCI
Prefunded and immediate, prefunded purchased by healthy and immediate by already in claiming state, this again provides cash in contrast to cost of care, if the insurer were to provide cost of care the premium would be uncompetitive

PMI
Provides for private care and policy premium is based on age and medical condition so a policy might be available for a 65+, if an insurer is unwilling to take the risk he might provide other products such as MME and Health cash plans benefit where the risk exposure is minimised (assuming PMI premium would not be competitive)


So for a 65+his health needs including morbidity and mortality risk would involve demand for providing to his nominee: a life insurance policy (accelerated CI - either death or CI whichever is first, also need for buyback due to occurrence of an event)

His chronic needs partly taken care of by NHS as they specialize in emergency and major treatment which might be his/her concern, he could also opt for a CI policy by which he also has an option to be admitted in a private hospital and get treatment.

To cover acute episodes of a chronic procedure he could have a PMI insurance (assuming premiums are not restrictive, he could also opt for budget versions such as waiting list plans, MME and Hospital cash) by which dependence on NHS can be reduced for provision of acute treatment

Also in spite of the life being healthy at 65+ the premiums for prefunded plans would have sky rocketed considering the value of his premium contribution to meet investment requirement of the company would be shortened, if the company does not have a very narrow interpretation of those who could opt for immediate need LTCI could opt for it as longer life being healthy would profit the Insured as he would be receiving longer payments

Above 65+ a person may not be eligible for IP but I don't see why they should be restricted to opting for other covers with appropriate loading/limits/exclusions imposed.

Old people
65 +
What products can they buy to help cover their need to keep going to NHS on regular basis ?

IP - only if they are working. If they are not working cannot use this
CI - covers chronic illnesses. Might be expensive as they get older ?
Pre-funded LTCI - usually not sold in UK
Immediate needs LTCI - can buy this with single premium. Can you buy this product and use it even if you can perform all ADLs and are not mentally impaired ?
PMI - to cover acute conditions and covers indemnity basis

Would PMI + CI or PMI + pre-funded LTCI or PMI + immediate needs LTCI provide adequate provision to avoid having to use NHS on a regular basis and to decrease the burden on NHS ?
This is assuming policyholders 65+ can afford it ?

Can over 65+ buy IP, CI, LTCI, PMI ?

Thanks very much

 

[Mark Willder]

Thanks to Thaikashaikh for the comprehensive reply.

So just to summarise, retired people could buy any of the ST1 products, but the cost could be prohibitive in many cases, eg in theory IP can be bought by people who are not working as a long-term sickness plan but in practice would not be offered to over 65s (unless anyone knows of a particularly creative design that their company uses).

You asked whether immediate LTCI could be bought by someone that had not failed the ADLs - the answer is no. However, the same objective could be achieved by buying an annuity (eg an impaired life annuity).

Best wishes

Mark