Long Term Care Fees Payment

There are a number of concerns that we and our families may have when faced with the issue of paying for care, for what is usually an unknown length of time. A major concern may be that the money might run out, so you will no longer be able to have the care provider or type of care (such as care in your own home), that you prefer. For many, the fact that the value within the estate is being depleted is also a considerable concern.

What does an Immediate Needs Annuity do?

Immediate Needs Annuities provide a guaranteed regular income designed to meet the cost of care. You pay a one-off lump sum to purchase the plan. The cost of the plan is determined by a number of factors:

• The required monthly payment you require
  Your gender, your age and your health
  Your medical history

An immediate care plan pays a regular tax-free (1)  income to your registered care provider for the rest of your life. There is no reliance on investment performance to achieve this.

As each plan is tailored around your individual care needs and priorities, there is no ‘fixed price’ for a care plan. Your medical history and current health are taken into account to arrive at a purchase price.

What about inflation?

Over time the costs of care will increase as a result of inflation. In parts of Britain, the average cost has soared by up to 31 per cent in five years (2). If you want to ensure that you protect the payments against increased care costs over time then you can add this feature to the plan.

What if I die soon after taking out a plan?

With some plans you can build in protection for the first six months of taking out a plan, where a proportion of the purchase price (less any income already paid) will be returned to your estate/beneficiaries should you pass away. If you wish to protect some of the capital used to purchase the plan for a longer period then you can select Capital Protection.

Capital Protection allows you to protect a proportion of the initial investment, the amount protected decreases over time directly in line with the income payments which have been made. Capital Protection provides the peace of mind that a fixed amount is guaranteed to be returned by the plan provider in the form of income/lump sum. Once the protected amount has been paid out as income the protection ends however the plan continues to pay the agreed levels of income until death.

Capital Protection is paid for at the outset with a single payment, the cost of which is determined by the level of protection you require.

Other options for care fees payment

The plan described on this page is designed to meet the immediate costs of care and the features available may vary depending on the plan provider. Other options are also available to help with meeting the immediate and long term costs of care, which our partner can discuss with you.

Find out more

Helping Hands have partnered with Key Retirement Solutions, who can provide you with comprehensive help and guidance to look at your options for paying for care.

You can speak to one of their Care Fees planners directly on

0800 915 4731

Helping Hands act as introducers only to Key Retirement Solutions.
1 Whilst payments are made directly to a registered care provider the payments are tax free. If payments are made to you then they will then become taxable.
2 Daily Mail 2011