You can read more on this topic here:-


[ Ссылка ]




Hello, In this video we are looking at Immediate care annuity.




At UK Care Guide, we understand that often the financial prospect of care can be daunting and difficult. That’s why we’ve compiled comprehensive articles on each method of paying for care to help you to make a sound decision.


Typically, people associate annuities with buying a pension annuity as part of retirement planning.


However, In this comprehensive article, we explore the option of taking out an Immediate Care Annuity to cover the cost of those needing care. These are also a type of long-term care insurance in that it provides an income towards meeting the costs of your care and is increasingly a popular option when looking at paying for care.


An annuity is simply a term that means an income is paid for the rest of your life.


A ‘Long Term Care Annuity is a type of insurance policy which provides a level of income for your lifetime, which you can use to pay for long-term care, and in particular where you use an annuity for care home fees. It is especially useful for those that may have a shorter life expectancy.
Long term care insurance or a long term annuity is a way to use your savings through a third party to pay for your care. This is often an advanced option suitable for those who wish to plan ahead for care provision in the future.


Some people may prefer to take away the worry of paying for their care in the future by buying a guaranteed income for life from an insurance company.


As above, an Immediate Annuity is most suitable for individuals who are considering care provision ahead of time. If you are already accessing care, then don’t worry – an Annuity provides a similar financial benefit for those who are currently in residential care.


Care annuity Firstly involves, you will agree with an insurance company to give them a lump sum amount. In return, they will give you a monthly payment for the rest of your life. This is where the term ‘Long Term Care Annuity’ is derived from. The income is paid tax-free if the payment is made directly to your care provider.


The amount you receive can be fixed, or it can go up each year to cover any increasing care costs.
How much you will receive from your Annuity depends on a number of factors including your age, your health, and how much you have to pay towards the annuity.


There are a number of steps involved in the process of buying an annuity.
The first stage is to have your plan underwritten. This allows you or your advisor to compare options also and consider options available for both immediate and deferred policies.


If a care funding plan incorporating an annuity is your chosen or recommended solution, it is best to shop around among all available providers in order to find the most cost-effective solution.
Make sure that you fully understand the options available to you when buying an annuity – such as capital protection, a deferred period, escalation, and how the plan can help with inheritance tax planning. However, if these terms are alien to you, the whole process can feel daunting.


This is why our most crucial piece of advice for those considering any type of care funding, but especially for anyone looking into buying an annuity, is to seek independent, professional advice.


Ideally, it’s advisable to seek support from an advisor who understands all funding options available to pay care fees. They should also understand how that relates to you and your current needs and future wishes.
They will know how to help anyone considering buying an annuity and offer the best advice in line with their preferences, requirements and financial situation.






That is the end of this video, but if you would like to read more you can do so on the help and advice website.

свернуть