You can use any lump sum you have available to buy a long term care plan from a specialist provider. The company which provides the plan in turn offers to pay out money to help fund your care fees for as long as it is needed.
If you need to go into care now or in the near future, you may wish to consider an immediate care plan. With this type of care funding annuity, payments from the plan to you or your care provider start immediately and continue for the rest of your life. In the event of death early into the care plan, the income payments you receive may be less than you invested. The level of payment from the plan depends on a number of factors, namely how long you are expected to live and the level of interest rates in the economy.
Immediate care annuities may include a money-back guarantee, offering to pay back some of the lump sum used to buy the plan in the event of death within the first six months. Further capital protection of your lump sum can be provided for an additional upfront payment.
A care plan will guarantee a specific level of income to help pay for care fees for the rest of the individual’s life. The cost will depend on:
The average cost of a long term care annuity is £100,000 and while this may appear to be on the high side, when set against average annual nursing care home fees of £38,000 this represents just over two and a half years’ worth of fees. With this in mind it should be noted that the average length of stay in a care home for a "self-funder" is 4 years and that 1 in 10 live 8 years or more. (Partnership statistics 2010)
Speak to Arrow Financial Services for more specific information on costs and suitability of long term care annuities or click ask the expert below to make an initial enquiry.
Long term care plans can come with additional features which may suit your particular situation. These include:
Contact us now on Chester 01244 322 330 for more information & guidance on this complicated area of financial planning.