There are a number of concerns that you and your loved ones may have when faced with the issue of paying for care, for what is usually an unknown length of time.
A major worry 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. This is where an immediate needs annuity can be extremely beneficial – you can rest assured that your preferred care provider is paid for without impacting on your care and comfort.
What is an immediate needs annuity?
Immediate needs annuities are a type of insurance policy, whereby a guaranteed regular income is provided to meet the cost of your care.
There are lots of different ways that immediate needs annuities are also known as, including:
- Immediate care annuity
- Annuity for home care fees
- Immediate care plans
- Immediate need care annuity
- Long-term care annuity
An immediate needs annuity pays a regular tax-free income to your registered care provider for the rest of your life. There is no reliance on investment performance to achieve this, and all that is required is a one-off lump sum payment 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
As each plan is tailored around your individual care needs and priorities, and there is no ‘fixed price’ for a care plan.
There are lots of different immediate needs annuities on the market, and it’s important that you shop around to find the right policy for you. Find out more here.
It’s imperative to always seek independent advice when considering taking out an immediate needs annuity.
Advantages of an immediate needs annuity
- Peace of mind knowing that your care needs are continually paid for
- Tax-free payments
- For an extra payment, you can purchase protection in case you pass away
- Arrange for fixed payments or payments to change with inflation
Disadvantages of an immediate needs annuity
- Large upfront payment
- Not suitable if you only need temporary care
- Unable to have a refund if you stop needing care
To ensure that you choose the right type of support for you, it’s important that you weight up all of your options when looking at an immediate needs annuity.
What’s next if you have an immediate needs annuity?
We are experienced in working with individuals who require care and who also have an immediate needs annuity. Call us today on 0333 060 5874 to discuss your options further and a member of our team will be happy to help you.
We’re here seven days a week to take your call.