Despite an increasing requirement for care in a population that is living to be older than ever before, the long-term care insurance market is in decline.

Such is the opinion of the Association of British Insurers (ABI), which stated that as individuals get older and require care for longer due to increased longevity, policies must adapt to cover future costs, which may have resulted in the product's popularity.

Jonathan French, ABI spokesperson, stated: "The insurance industry is looking at this issue very closely.

"It's our view that if things go on as they are, both in terms of the public sector and the private sector involved in long-term care, it will become an unsustainable problem," he said.

The Financial Services Authority notes the existence of two kinds of long-term care insurance, immediate care and pre-funded. The former is bought when an individual needs care immediately and the latter is bought in advance should care be needed in the future.