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Types of long-term care insurance

There are basically two types of long-term care insurance (LTCI):

  • Immediate care LTCI - you can buy this when you actually need care; and
  • Pre-funded LTCI - you can buy this in advance, in case you need care in the future.

Firms advising and selling LTCI must be regulated by us, or be the agent of a firm we regulate. Firms we regulate have to meet certain standards we set. Always check that the firm you use is on our Register and is allowed to sell or advise on LTCI before handing over your money. If they aren't regulated by us and things go wrong, you won't have access to complaints and compensation procedures. To find out if a firm is on our Register, see Check our Register.

Firms we regulate must only recommend products that are suitable for you and must give you certain information about their services and costs.

Once the adviser has ascertained that a particular product is suitable for you, they'll also give you a Key Features document, which sets out:

  • the particular features of the product;
  • how it works;
  • the policy benefits;
  • what premium you'll have to pay; and
  • the cooling-off period – the length of time after completing the application in which you can change your mind.

Do read them and ask questions if anything is not clear. For more information about getting advice, see Getting help.