Long-term care policies: between costs, time and conditions, the offer is not standard
Variety of proposals is a plus for the contractor, but limits comparability
Key points
"The cost of a long-term care policy depends on several factors, including the age of entry, the annuity chosen and the premium payment method. For the same whole-life cover, taking out the policy earlier spreads the burden over time, making the premium more sustainable," explains Massimiliano Dalla Via, CEO of Intesa Sanpaolo Protezione.
The many elements that determine the premium calculation and the resulting differentiation of the offer represent the main limitation to the comparability of proposals on the market, but also the most important guarantee of their adaptability to policyholders' needs. Starting from the duration of the cover (between whole-life or temporary policies) or the payment schedule of the premium, which may be periodic or in one lump sum (single premium policies), fixed or variable.
Insurance companies' proposals
For example, the Unipol price list includes two products to cover the risk of non-self-sufficiency, one with a lower premium up to the age of 70 that rises from age 71, and another with a constant annual premium for the entire duration of the contract. A formula which, stresses Giovanna Gigliotti, UniSalute's CEO, "provides an additional benefit: with the first month of the annuity, an additional instalment equal to six times the annuity instalment is paid out".
The methods of access are also different, as Ltc can be distributed as a stand-alone product or in combination with other contracts. For Axa, for example, the range includes a multi-guarantee product that includes the three life covers: death, serious illness and loss of self-sufficiency, in which the customer can choose the guarantees that cover his or her needs, including loss of self-sufficiency alone.
The instruments also differ in relation to the scope of the guarantees. As in the case of two Vittoria Assicurazioni products. "The first," explains Marco Brega, the company's Head of Life, "is a product with a premium payment term and whole life cover. The second, distributed to policyholders who already have a policy with Vittoria, has a maximum duration of 20 years, with an age limit of the policyholder at maturity of 70 years".
