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.
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:
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.
These care fee plans are ideally suited to those who:-
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.
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:
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%|
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.
Powers of Attorney and Inheritance Tax Planning are not regulated by the Financial Conduct Authority
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
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 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 (https://www.fca.org.uk/register/) under reference 440703 and 440718.
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