Could an equity release plan ease long-term care costs?

The current system for providing long term care in the UK is "complicated and rather arbitrary", it has been claimed.

This could inspire a number of retired people to look into an equity release scheme as a way of ensuring their long term care costs can be met.

Financial research company Defaqto has claimed that there is currently an "insufficient" number of insurance products available to provide consumers with choice and a "competitive market".

Ben Heffer, insight analyst for protection at Defaqto, said: "The industry needs to collaborate to be taken seriously by consumers.

"Advisers need to be taking account of people’s long term care needs and product providers need to bring suitably innovative products to market to give consumers quality choice."

The comments could lead to a rise in enquiries about equity release plans, such as lifetime mortgages, which can provide UK homeowners with a welcome financial boost with cash taken from the value of their property assets.