Specifically designed for those already needing care, care fee annuities, offer a very simple, very tax-efficient way of paying for care, by providing a guaranteed income for however long is necessary, no matter where care is required – either at home or in a care home.

By offering a safe and secure income they offer tremendous peace of mind to anyone responsible for paying for care and helps to cap total lifetime cost.
 

Little Known Facts About Care Fee Annuities.

• In return for paying just one single premium, a care fees annuity will provide an ongoing income to meet care fees indefinitely.
• The income provided by a care fees annuity can be paid directly to any care home not only making payments easier but also TAX-FREE!
• You can get even cheaper premiums by opting to defer payments commencing for your choice of 1-5 years. To read more about these deferred Annuities and other options, visit Annuity Options.
• As premiums will be based on how long insurers feel the person needing care will live and therefore there will always be a risk of losing out if they die early, by paying a little more for some capital protection you can guarantee either 25%, 50% or 75% of the premium will be paid by date of death or any balance of this guarantee would be refunded to the estate.

 
Who Is Eligible For A Care Fees Annuity?

Anyone aged 60 or over requiring care in the UK can have an annuity to fund either care at home or care in a care home.

Care fee annuities can be taken out either by the person needing care, or their Power of Attorney and can be applied for at any stage. They can even be purchased several years after moving into a care home.

There is no upper age limit.

Are Care Fee Annuities a Gamble?

Yes, but only in as much as the premium is based on how long they feel they may need to pay for taking into account your need for care and medical history.

Should opt for the cheapest annuity with no capital protection, the plan will cease on death, and you will receive no refund. Consequently, in the event of any early death they can represent poor value. However, this needs to be weighed up with whether it is more important to ensure you can continue to fund your parent or relative’s care without fear of their money becoming exhausted when you may not be able to give them the care they deserve?

If you want to minimise the risk of losing too much money in the event of any early death, you can always opt for either:

• A capital protected annuity that provides for a little extra premium a guarantee that at least either 25%,50% or 75% of the premium would always be paid, either in income before death, or the balance of the guarantee refunded to the estate. Or
• A Deferred Annuity where you agree for benefits not to commence for a period (1-5 years) to give you time to see how your parent or relative settles. This makes the premium cheaper, but you still need to pay the premium when applying and you will have to fund the care yourself until the plan commences after your chosen period. Should your parent or relative die during any deferment the combined cost of a reduced deferred annuity and the fees paid up to any death can be less. Once the deferred annuity commences, it will then continue to pay indefinitely just like any immediate annuity.
   
  If you select an escalating deferred annuity, the benefit will continue to increase during any deferment it just will not be paid so once payments start to be paid, the commencing income will be more to help cover what will then be higher care fees.

You can read more about deferred annuities by visiting deferred annuities.

Who are care fee annuities most suited to?

They are only suited to those who require care now and need to pay for their own care.   They are not an insurance against possibly needing care in the future.

They are ideal for families or Powers of Attorney who want to secure a parent or relative’s ongoing care, give them peace of mind and put a cap on the care fees.

You can read more about the relative merits of a care fees annuity, visit advantages and disadvantages of care fee annuities.

How Much Do Care Fee Annuities Cost?

Annuity premiums will depend on a number of factors including; age, health, amount of income you need but more importantly your health and level of care needed.

Different companies underwriting will differ significantly therefore it is impossible to give you any accurate idea without obtaining quotes but being specialists we are happy to obtain these for your FREE of CHARGE.

How Do I Get A Care Fees Annuity Quote?

Funding care is deemed by the FCA to be a specialist area of advice. Consequently, insurance companies do not provide quotes directly to the public but specialist advisers such our ourselves will gladly request them for you.

As we appreciate you will need to know how much one would cost before even considering them, here at Care-Fees-Annuity we will obtain all possible quotes for you to consider FREE OF CHARGE and without any obligation.

All you need to do to request your quotes, is to click the button below, provide us with your details  and we will send you an initial medical form for you to complete and return to us with any applicable Power of Attorney. Once we receive these we will do the rest for you!!

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Providing you with the most competitive quotes from ALL available providers