British Friendly has entered the long-term care funding market with the launch of its new Lifetime Care Plan, providing advisers with an additional solution to help clients meet the growing cost of later-life care.
The mutual insurer’s new Immediate Needs Annuity has been designed for UK residents aged 60 and over who have an immediate or imminent need for care and are funding their own care costs.
The launch comes as demand for specialist later-life planning solutions continues to grow. With one in four people projected to be aged 65 or over by 2050 and increasing numbers of individuals living longer in poor health, advisers are facing more complex conversations around care funding and retirement planning.
GUARANTEED MONTHLY PAYMENTS
The Lifetime Care Plan provides guaranteed monthly payments made directly to UK-registered care providers for the remainder of the client’s life, helping to create certainty around future care costs.
The proposition offers advisers a range of planning options, including immediate or deferred payments, fixed or escalating income, and optional capital protection features that can preserve up to 75% of the original premium for beneficiaries.
British Friendly said the product complements its existing protection proposition and broadens the support available to advisers working with clients in later life.
CARE COSTS FEAR
Jane Finnerty, Joint Chair of the Society of Later Life Advisers (SOLLA), said: “Fear of care costs still stops far too many people planning properly for retirement, often preventing them from fully enjoying those years.
“Advisers play a crucial role in discussing care-cost risks and funding options that can bring real peace of mind. SOLLA’s aim is to ensure clients can find advisers with this specialist expertise.
“British Friendly’s welcome entry into the care-funding market will help raise public awareness and strengthen the focus on care advice as an essential part of the retirement and later-life journey.”
CHALLENGING CONVERSATION
Claire Kelly, Proposition & Marketing Director at British Friendly, added: “Funding long-term care is one of the most complex and emotionally challenging conversations and financial decisions many families will face.
“The Lifetime Care Plan has been developed to help advisers bring greater certainty and reassurance to these discussions, while building on the awareness already present in the market and encouraging earlier planning.
“The addition of this proposition strengthens the diversity of our product range, addressing a growing and often underserved consumer need with an innovative solution that complements both our existing Income Protection offering and our mutual ethos.
“By delivering guaranteed payments directly to care providers, the plan enables advisers to help clients secure dignity, stability and peace of mind at a time when financial certainty matters most. At the same time, its flexibility allows advisers to tailor solutions around wider financial planning, estate considerations and individual family needs.”
HEALTHY COMPETITION
Nicky Cave, Managing Director at Eldercare Group, said: “We have been delighted to watch the development of British Friendly’s Lifetime Care Plan over the last few months, and we are excited to be able to start making this available to our clients. British Friendly has been really receptive to all our feedback regarding essential product features in the run up to this launch.
“As a specialist Care Funding Advisory firm, we welcome more options for the families that we speak to and, with British Friendly becoming the fifth Provider now in the market, this healthy competition can only be beneficial to our clients.
“For Advisers who don’t hold the relevant qualification and expertise, they can still make the Care Fees Annuity solution available to their clients by referring to a specialist such as ourselves.”
The launch also increases competition within the specialist care fees annuity market, with British Friendly becoming the fifth provider operating in the sector.
The Lifetime Care Plan is only available through authorised advisers holding recognised long-term care qualifications, including CF8 or Cert LTCP.
