Care fee annuities, also called immediate need annuities or even care home annuities are very tax efficient investments designed to provide people needing care (or their Powers of Attorney) with either a level, or escalating guaranteed income for the rest of their life in order to pay for care, whether the care they want is to be provided at home, in a residential care home or in a nursing home.
Care Fee annuities are also portable, so no matter whether you buy one whilst receiving care at home, it will continue to be paid to any registered care home you may eventually move to.
The real beauty of them is their simplicity and also the peace of mind they provide that money will never run out. As you only ever need to pay one single premium at outset, it also helps cap the future cost of care.
Care Fee Annuities are offered only by a very few leading UK insurers and are purchased only when care is needed (which is why they are often described as Immediate Needs Annuities). Care fee annuities are purchased by you or your Power of Attorney by paying just one single premium at outset.
In return for paying this premium a care fees annuity can provide you with:-
*The income paid by care annuities is currently only tax free providing it is paid to a registered care provider or home and the benefits requested are not greater than the cost of care. Please be aware tax rules are also liable to change.
However as a care fees annuity premium is calculated and paid at outset, should you die prematurely and have elected not to take the optional extra capital protection, you will not receive any refund. This, however, can to some extent be insured against by paying extra and taking the capital protection option. You can read more about capital protected care fee annuities below.
Care fee annuities are individually priced based on both the amount of income requested, the options selected and how long the insurer feels they will need to continue paying for. This in turn is based on the individual’s age, medical history and need for care. Therefore it’s impossible to give any meaningful figures here but as specialist and impartial care fee advisers we will be pleased to obtain the very best care fee annuity quotes we can, from ALL providers, free of charge and without any obligation.
To obtain your care fees annuity quote simply click here.
The main benefit of a care fees annuity is to ensure care can continue indefinitely but no one can predict just how long care will be required for and should the person it covers, die earlier than expected you could lose money compared to what you have paid. It’s therefore reassuring to know that even if this turns out to be quite short, one immediate needs annuity provider includes free of charge, some limited and decreasing capital protection within the first 6 months which will refund any difference between the amount protected and the income paid, and all providers, offer you the chance to buy longer protection giving you the chance to initially protect either 25%, 50% or 75% of the premium.
You can find out all you need to know about care fee annuities by requesting or downloading a copy of our brochure opposite.
*Please note advising on and arranging annuity require care fees advice and fees will be charged and will be discussed and agreed at time of giving advice but Quotes are still provided FREE OF CHARGE.
Please note: These plans are not offered direct by the insurers
Find out all you need to know about care fee annuities or care plans. Click here.
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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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