Since the introduction of the Care Act, it is clear that much of the financial responsibility for long-term care is going to fall to us as individuals rather than the state.

Alternatives

With the cost of a care home averaging at around £1,200 a week* in the south of England, this could cause a significant strain on your financial resources.

In addition, long-term Care Funding can have an impact on your savings and investments and could also include your home**. It is therefore important that these issues are given sufficient importance when considering your finances as a whole.

There are several other funding possibilities which could include Pension Income, Regular Mortgages, Equity Release, Deferred Payment Agreements etc.

*Source - Which Elderly Care.
**Where a mortgage is concerned, your home may be repossessed if you do not keep up repayments.

Immediate Needs Annuities (or Immediate Lifetime Care Plans)

Immediate Needs Annuities and Immediate Lifetime Care Plans are essentially the same plan, although the way they are underwritten differs slightly.

In return for a single payment both Care Plans will pay a regular amount each month. As long as the payment is made directly to the Care Provider (not the individual carer) the payment is tax free.

These plans can be incredibly powerful tools. They guarantee payment for life, which can give the person in care complete security. They can protect family assets and can in some cases cap costs.

For more information call Keith Galgut on 07775 507 331.

 

The content of this page is for general information only and should not be considered advice. Professional advice relating to your individual circumstances should always be sought prior to making any decisions or taking any action.