The Strategic Society Centre has stressed the need for insurers to reform their policies to encourage more retirees to buy health cover. Currently only four per cent of Britain’s 120 000 self funded retirees have immediate needs annuities.
Research shows that even if more people bought annuities the majority would have to rely on the national public health service for help. This is concerning as Britain has an aging population which will only worsen as time progresses.
James Lloyd, director of the Strategic Society Centre, said: “How we fund the long-term care of older people is one of the biggest policy challenges of our time.”
Mr Lloyd claimed that there are a range of factors that will limit markets capacity for growth. Annuities are suitable for people who can afford them and require long-term financial stability. Retirement village and hostel residents can use annuities to meet their needs.
Insurers need to recognise the importance of meeting people’s immediate needs. Companies will increase their products if insurers focused their attention on the costs of residential care. Retirees will buy immediate needs annuities if they think that there is a suitable policy for them. Insurers hope that their efforts will achieve greater funding across the region.
Increased funding can be achieved by using tax payer’s money to create a pool for people’s health needs. Social services can include crisis money as part of their policy to relieve the stress on the national service. More funds will enable insurance companies to offer better services for more people to use.
Related Posts :
