Advice on care

Advice on care

Care Fee Annuities

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Advice on Care – Your Care Fees Annuity specialists

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 additional tax free income for the rest of their life. This is then used to pay for care fees wherever care is required – at home or in a care home or 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 Benefits of Care Fee Annuities

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.

How Do Care Annuities or Care Fee Plans work?

Care Fee Annuities can only be purchased once care is needed (which is why they are often described as Immediate Needs Annuities) and you are over 60. They can be purchased by either yourself or a Power of Attorney acting for you and paid for by paying just one single premium at outset. 

In return for paying this premium a care fees annuity can provide you with:-

  • A TAX FREE income* which is paid for life. 
  • An income which can be paid either monthly, quarterly or annually and can for an extra premium be set up to increase each year by any requested amount.
  • Peace of Mind that money should never run out and that any remaining capital is protected for future inheritances.
  • Simplicity of tax matters - as the income a care annuity provides never needs to be declared unless they are paid into your own bank account rather than to a registered care provider.

*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 is purchased by paying an initial premium they do carry the risk that should you die prematurely and decided not to take the optional extra capital protection, you will receive no refund. This 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

How much do care fee annuities cost?

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 is impossible to give any meaningful figures here, but our specialist care fee specialists Care Financial will be pleased to obtain the very best care fee annuity quotes for you from ALL providers, free of charge and without any obligation. 

Capital Protection - Offering you money back even on death

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. 

Care Fee Annuity Quotes

Free no obligation quotes
Impartial Advice - All providers quotes

Ask our specialists Care Financial to obtain your free comparison today

or call 01476 589 565

Care Financial - your immediate need annuity specialist

Please note: These plans are not offered direct by the insurers

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Head Office Address:
Advice on Care
267 Barrowby Road, Grantham,
Lincolnshire, NG31 8NR

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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.

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