The home insurance plan submitted by the Conservatives for the elderly has been welcomed by the UK insurance industry.

The Conservatives said that the new scheme would have a guarantee of paying the home care fees of people in return for a one- off payment on retirement of approximately £8,000.

They also said that the elderly will be given the choice of signing the home insurance scheme once they reach the retirement age of 60 years.

People above the age of 65 will be open to a one-off joining fee of about £8,000, but for a limited period of time.

A representative of the Association of British Insurers (ABI) said that the ABI has been trying hard over the years to advocate a partnership between the private and public sectors to deal with the important and expensive issue of providing long term care for senior citizens.

He also added that the ABI is very supportive of the proposal submitted by the Conservatives and that it has a lot of merits. The ABI is very pleased to know that the conservatives are addressing the issue in a serious way.

However, the details of the new home insurance cover will have to be examined carefully. The ABI is also looking forward to work closely in the development of the scheme.