BUPA has launched a scheme under which clients who have pre-funded their long-term care can claim back some of their lump sum payment following receipt of State nursing care benefit.
BUPA says this refund option is designed to protect people from paying too much for their care.
The amount of free care available from the state is determined by an assessment when someone needs to receive long term care. The new refund option will apply once this state nursing entitlement has been determined.
When this is combined with the cover available through their pre-funded insurance, if the client has more funds available than is necessary to cover the total cost of their care, BUPA will refund the difference.
BUPA highlighted that this move has never been more necessary as the population is continuing to age dramatically. It estimates that by 2031 more than 1,185,000 people will need continuous long-term care, an increase of 68% per cent from today.
BUPA's long-term care business manager Les Schroeter said: "It is impossible for intermediaries and clients considering pre-funded long-term care to second guess precisely what level of funding, if any, will be necessary when the care is actually required.
"Our new refund option gives people greater peace of mind that they will not pay out too much for their long-term care."
The state has funded the nursing component of long-term care in England since October 2001.
However, Schroeter commented: "The state entitlement by no means removes the need for long-term care insurance - in fact it highlights how important and necessary it is. The maximum state benefit in England is £410 per month, which equates to less than a quarter of the average cost of care in a nursing home."
