Dementia tax is good news for insurance market

The so-called demential tax proposed by the Prime Minister will mean that those with assets worth over £100,000 (including their homes) will have to pay for home care. It’s been promised that no-one will have to sell their homes in order to pay: instead, costs will be recovered from their estate after their death. What’s not said is that they will have to take out some kind of financial policy, like equity release or a lifetime mortgage, to secure payment. This means that those affected will not only be paying for care but also paying substantial interest to insurance companies – such as Legal and General. By chance, in 2016 the Prime Minister appointed John Godrey as her Director of Policy: his previous job had been Director of Corporate Affairs at Legal and General.

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