So, the Tories are looking after their own in the insurance markets! Who would have guessed ?
Quote from a city worker:
“The Conservatives will attempt to soften the blow by promising that pensioners will not have to sell their homes to pay for their care costs while they or a surviving partner are alive. Instead, ‘products will be available’ allowing the elderly to pay by extracting equity from their homes, which will be recovered at a later date when they die or sell their residence.”
The following has recently been posted online:
‘People need to read the small print associated with this because it’s a lot nastier than it looks. I work in the city. The insurance industry was approached by the Government several months ago with the aim of creating a new market for a new product.
This arrangement is a culmination of those discussions. You won’t have to sell your house PROVIDED that you purchase an insurance product to cover your social care. The ‘premiums’ would be recovered from the equity after the house had been sold and the insurance company would have a lien on the house and could force a sale if it wanted to. So your offspring couldn’t keep it on the market for long in order to get the best price.
The real kicker in this is that in order to encourage the industry to market these products the Government guaranteed that there would be no cap on the premiums.
This was in some ways “atonement” for Osborne’s destruction of the highly lucrative annuities market. This means that the premiums could be up to (and including) the entire remaining equity in the property after the Government had taken its cut. Companies will be falling over themselves to get their snouts in this trough.
In short your offspring and relatives could get absolutely nothing from your estate.
If you buy one of these products you need to read the small print very carefully indeed because there will be some real dogs on the market.
I suspect that this is another financial scandal waiting to happen. but by the time it does May will be long gone.”