Advice on care
Impartial Care Fee Advisers

Advice on care

Experts in paying for care

Immediate Needs Annuity

advice on care

The Guaranteed and secure way to pay for care

An Immediate needs annuity or "Immediate Care Annuity" is a specific type of insurance which guarantees to pay care fees indefinitely, removing any worries that money may run out.

Paying for Care – Made Simple

Immediate need annuities make light work of paying for an unknown period of care. They are a very simple insurance policy which guarantees an immediate income will be paid for life to help pay for care. This is why they are also referred to as care fee annuities.

There is no maximum age limit and by paying a little extra you can also ensure the income increases each year to help offset increases in care fees. Such escalating annuities are the only guaranteed way of paying for care which can also offer the reassurance of guaranteed annual increases in income,

The amount of income these annuities pay is entirely down to you and will normally be either:

  • 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 not only will this make your life easier, but it also means it can be paid TAX FREE.

The premiums will be based on the insurer’s view of how long they will need to pay and the amount of annual income you request. This means of course that should the person needing care die prematurely, you will receive no refund, unless you have also chosen to capital protect the premium when in such circumstances you would receive some money back.

Who are Immediate Needs Annuities most suited to?

These care fee plans are ideally suited to those who:-

  • Need to pay for their own care and not entitled to free NHS Continuing Healthcare
  • Are receiving care at home, or are needing care in a care home
  • Want the certainty and peace of mind that care fees can continue to be met for however long required
  • Want to cap the cost of care by paying a one off premium to protect any remaining savings will be preserved for future inheritances
  • Don’t have a high attitude to investment risk and want the certainty and annual escalation of income that only an immediate needs annuity offers
  • Want to avoid ever needing to pay for their own parent’s care should their parent outlive their own savings
  • Are either professional or unconnected Powers of Attorney (such as solicitors) who clearly see their main objective is to secure the care of the person they are representing
  • Sole POA’s who are the only beneficiary of the person needing care and they want to ensure care would continue even if they died before the person receiving care
  • Those who have the money available to invest – although if you don’t we may still be able to help if you have a house by using equity release.

They are NOT SUITABLE if you are likely to qualify for NHS Continuing Health Care or feel where the need for care is only temporary. They are also NOT SUITABLE or available to those who just want to insure against the risk of possible needing care in the future where you need long term care insurance.

Increasingly popular

Not surprisingly with the potential cost of care being so great, immediate need annuities are becoming increasingly popular.

How much do Immediate Need Annuities cost? - Immediate Needs Annuity Premiums

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 accurate figures but if you complete our quote request form we would be pleased to obtain accurate quotes for you FREE OF CHARGE from all providers.

If, however, you just want an idea one provider Just has provided us with some idea as to what typical Immediate Need Annuity premiums MIGHT BE to provide £20,000 for different ages.

  Escalation 0% Escalation 5%
Age Residential Nursing Residential Nursing
75 £147,000 £126,500 £182,400 £153,000
80 £138,800 £117,000 £157,200 £138,400
85 £109,200 £101,100 £126,600 £116,200
90 £86,600 £81,000 £97,000 £90,200
95 £68,200 £64,400 £74,300 £69,900

Source: Just 2018

Please remember these are only just examples and actual premiums will differ quite significantly, hopefully cheaper once medical details are provided.

Also Aviva can offer significantly different premiums – and therefore Aviva’s could be potentially cheaper than these.

Advice on Care - The Immediate Needs Annuity specialists

Powers of Attorney and Inheritance Tax Planning are not regulated by the Financial Conduct Authority

Advice on Care – Immediate Needs Annuity specialists – FREE Quotes

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?

Our Quotation Promise:

  • We will obtain ALL possible care fee annuity quotes, Free of Charge and without obligation.
  • Once obtained we send you a summary to consider.
  • Only should you wish to arrange one would we discuss and agree advice fees, but until then, all quotes are obtained and supplied FREE OF CHARGE.

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


Contact us

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

Southern Regional Office Address:
Advice on Care
40 Caversham Road Reading, Berks, RG1 7EB

Telephone: 0800 180 4336



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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 Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. Quilter Financial Services Limited and Quilter Mortgage Planning Limited are entered on the FCA register ( under reference 440703 and 440718.

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