The role of insurers in private homecare

April 4, 2024 Homecare Services

The role of insurers in private homecare

Considering private homecare for yourself or a loved one? This is a big decision, and understanding how insurers fit into the picture can be confusing.

Do insurers pay for homecare?

In most cases, traditional health insurance in the UK do not cover private homecare costs.  However, there are a few exceptions:

Critical illness cover: Some critical illness policies may offer a lump sum pay out if you are diagnosed with a specific condition requiring homecare. Be aware that these pay outs may not be enough to cover the entirety of your care needs.

Accident and illness (A&I) insurance: These policies might provide limited homecare support following an accident or illness. It is important to note that this support is usually temporary and may have limitations on the type and amount of care provided.

Bespoke policies: check with your insurer if they provide any coverage for at home services as part of your policy.

Where insurers can help?

Even if they don’t directly pay for care, insurers can still play a valuable role:

Specialist homecare insurance: This niche market offers policies specifically designed to cover homecare costs. These can be complex, so here’s a breakdown:

  • Types of coverage: Policies can cover daily care needs, dementia care, live-in care, or a combination.
  • Cost considerations: Premiums will vary depending on your age, health, level of care needed, and policy duration.
  • Do your research: Carefully compare policies, understand excess amounts (deductibles), and ensure the policy covers your anticipated care needs.

Financial guidance: Some insurers offer resources and advisors to help you understand your financial options for funding homecare. They can explain:

  • Equity release schemes: Accessing equity tied up in your property to fund care.
  • Annuities: Converting a lump sum into a guaranteed income stream to help pay for care.
  • Using savings and investments: This approach requires careful planning to ensure financial security in the long run.

Exploring alternatives

Local Authority support: The NHS may offer some homecare services, and your local authority might provide financial assistance based on a means-tested needs assessment. It is important to note that this support can be limited and may have waiting lists.

Self-funding: This may be an option, but it is vital to consider the ongoing costs of care and potential impact on your financial security.

Taking control: making informed decisions

Shop around: Compare insurance policies and homecare providers to find the best fit for your needs and budget, making sure you ask the right questions at this point is essential.

Read the fine print: Understand policy exclusions, coverage limitations, pre-existing condition clauses, and excess amounts (deductibles) before signing anything.

Seek professional advice: A financial advisor can help you create a sustainable plan for funding homecare. They can consider your assets, income, and long-term care needs.

While insurers may not be the direct answer for covering private homecare, you may have coverage and insurers can be valuable resources in your overall planning.  By exploring all options and seeking professional guidance, you can make an informed decision about the best way to secure the care you need.

How can Cavendish Homecare help?

At Cavendish Homecare, we deliver exceptional care in the familiar surroundings of your own home, with transparent costing and flexible care packages, you will always remain in control of your care. We provide personalised private home care tailored to individual needs in London and the Home Counties. To learn more about our care services and how we can assist with your care needs, please reach out to our team at 020 3008 5210 or email us at