This paper is about financial products which meet the healthcare costs of the elderly. It covers products that include elements of housing and healthcare provision, as well as insurance products with financial benefits that meet or reduce the cost of healthcare. It is hoped that the paper will be of interest to property developers and managers of retirement housing and nursing homes, as well as to the actuarial profession and the financial services community.

The paper introduces some of the areas that the author has researched and worked in over the past three years. During the same period, many insurance companies and developers are known to have researched the market for financial products which cover the cost of healthcare for the elderly. Demographic changes, coupled with more widespread home ownership and occupational pensions, have created a major opportunity for new products. Continuation of these trends, and political and cultural changes away from State provision, suggest that the need for new products will grow. In the U.S.A., similar trends have led to a rapidly growing market for many products combining finance and healthcare for the elderly. In the U.K., the market has been slower to respond to the opportunities.