Care Fees Annuities
Care Fees annuities are all about;
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As such we are regularly being asked by carers and Power of Attorney’s to arrange care fees annuities to ensure chosen care can continue indefinitely and to help reduce overall cost of care fees. |
Why consider care fees or long term care annuities?
With residential care costs ranging from £350 to £750 per week and £500 to £1,100 per week for nursing care nursing care, depending on region and accommodation*, if you have to be a self-funder and simply pay as you go, meeting costs simply out of savings, there is a real possibility that you might have to sell your home and costs even consume all of your savings.
*Source: Costs of Bupa Care Homes- www. bupa.co.uk. Figures correct as at May 2010
To help overcome this insurers have developed Immediate Need Care Annuities (also referred to as Long Term Care Annuities).
What are Care Fees Annuities?
In return for giving a specialist long term care Insurer a single premium, an immediate care fees annuity (sometimes referred to as Immediate Needs Annuity) guarantees that the insurance company will continue to pay the insured income directly to any registered care provider tax-free for the rest of the person's life, giving you more certainty that their care can continue unaffected no matter how long this turns out to be and that money will not run out. To keep costs to a minimum we would normally recommend that you obtain quotes only for the between care fees and the persons ongoing income.
Who Can have a Care Annuity?
Care Fees Annuities or Immediate Needs Annuities are only available to people over 50 who need care immediately, whether that’s care in a care home or in their own home.
How much do Care Fee Annuities cost?
Unfortunately as care fee annuities are individually priced, based on the person needing care's past medical history, the only way to get an accurate price is to fill in our free quote request form and we will send you a medical form for completing and returning which will then be sent off to the GP to obtain the medical records when we will be able to obtain all possible quotes for you - FREE OF CHARGE.
How much does a Care Fees Annuity cost?
A Care Fees Annuity is individually priced, based on age, health, Sex and the income you need it to provide. To find out how much one would cost, click here provide us with some background information and we will send you a confidential medical questionnaire for you to complete and return to us, when we will obtain the best quotes for you.
How tax-efficient are care annuities?
Providing the benefits are paid directly to a registered care provider, they are tax free. This means the income produced doesn’t increase the persons income tax liability and that it costs less to buy a care fees annuity than it would an ordinary annuity, providing the same benefits.
Options
Escalation – To help keep pace with increases in care fees, you can
request that quotes be obtained to allow for the benefits to increase each year either by a set % per annum or by inflation.
Capital Protection – To overcome the possibility that death could occur shortly after paying the premium, for an additional cost you can protect that up to 75% of the premium paid, minus benefits received by time of death, are returned to the estate.
Care Fees Annuities- pros and cons
If you would like to understand more about the advantages and disadvantages of care annuities see care fees annuities –advantages and disadvantages.