Bonds with a life assurance element should not be counted by local authorities when means testing for long- term care. But financial advisers say some councils are still including them in assessments.

Local authorities assess the assets of individuals who require care, whether in their own home or in a care home, and will not contribute towards the fees if the individual's total assets, including his or her home, amount to more than £21,500. If the assets fall below this, the local authority will make a contribution.