Immediate needs annuity or "Immediate Care Annuities" is a specific type of annuity designed to pay care fees for life for anyone who now needs long term care.
Immediate need annuities are in essence very simple. You pay a single premium to the insurance company at inception (no ongoing premiums) and in return they guarantee to pay an agreed income to any care home or registered care provider, for the rest of the person’s life. This which is why they are also referred to a care fee annuities. You can also ask for this income to increase each year to help provide for increasing care fees, but will have to pay a little more for this.
The amount of income they provide, is requested by you and should either be just the shortfall between the cost of care fees and the person’s ongoing income, or alternatively the full cost of care. The income can and should, be paid directly to the care provider (care home or care agency) as this makes life simpler, and more importantly means it can be paid TAX FREE.
Once set up the "income" continues indefinitely and can also be arranged to increase each year in line with any care home or care agency fee increases, taking away any worries over money not lasting.
Immediate need annuities are also portable. So if you start receiving care at home but then need to move into a care home, you needn’t worry, the income can simply be transferred to the new care home albeit, depending on costs of care, it may need to be topped. This can be done by either by doing a further annuity or paying any new shortfall from savings. Either way the annuity income will still continue for life.
These care fee plans are ideally suited to those who:-
Not surprisingly with the potential cost of care being so great, immediate need annuities are becoming increasingly popular.
Immediate need annuities are all individually priced based on; the benefit amount you want it to provide, the options you chose- escalation and/or capital protection but more importantly age and medical history. Consequently it’s impossible to give you any figures here, but as specialist and impartial care fee advisers, we will be pleased to obtain the very best immediate needs annuity quotes possible, from ALL providers, free of charge and without any obligation. Why not ask us to obtain a quote today.
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We have been helping families find ways of paying for care ever since 2004 and have helped many by setting up an immediate needs annuity for them such as Mr JS of Cumbria who wrote to us recently about an annuity we set up some time ago to say...
Janet is still alive and the Care Annuity benefits are being received without any problems. The annuity has removed a significant worry from my list and enables me to reassure Janet about her financial situation with hand on heart. So it has been very cost effective in emotional and psychological terms. Thank you very much for setting it up for us.
Why not allow us to find out just how inexpensive an immediate needs annuity might be for you?
Please note: These plans are not offered direct by the insurers
Head Office Address:
Advice on Care
267 Barrowby Road, Grantham, Lincolnshire, NG31 8NR
Southern Regional Office Address:
Advice on Care
Abbey House, 1650 Arlington Business Park, Theale, Reading, Berks, RG7 4SA
Telephone: 01476 589 567
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The information contained in this web site is for general information only and is not financial, investment or tax advice. It is also subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. If you would like to discuss a particular issue or generally ask us how we can advise on your particular situation then please contact us.
Advice on Care is a trading style of Keith Hargraves who is an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA register (http://www.fca.org.uk/register/) under reference 440703 and 440718.
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