Long Term Care (LTC) will pay the costs of residential or nursing home care for elderly people. The sum is paid for life and payment starts once you become severely mentally impaired.

Current government policy for people who need care is that it is the local authority's responsibility. But when assessing your needs they will also look at your assets. If you live on your own or have assets worth over £16,000 then you will be required to contribute towards those costs. Care in your home might cost £8 per hour and living in a home could easily cost £13,000 a year.

The monthly payments can be paid directly to the care provider. Payments are made when you can no longer perform two or three "activities of daily living." These could include feeding or cleaning yourself, being mobile like transferring yourself from a chair or bed.

Although these plans are implied as meeting your needs for old age disabilities, there are actually about preserving your assets and your capital. If you don't want to fund your care then LTC may be worthwhile. But if state provision- that is currently under review by a Royal Commission- is cut, then LTC might become even more important. Apply now!