Advice on care
Impartial Care Fee Advisers

Advice on care

Experts in paying for care

Immediate Needs Annuity

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Immediate needs annuity or "Immediate Care Annuities" is a specific type of annuity designed to pay care fees for life for anyone who now needs long term care.

How Do Immediate Need Annuities Work

Immediate need annuities are in essence very simple. You pay a single premium to the insurance company at inception (no ongoing premiums) and in return they guarantee to pay an agreed income to any care home or registered care provider, for the rest of the person’s life. This which is why they are also referred to a care fee annuities. You can also ask for this income to increase each year to help provide for increasing care fees, but will have to pay a little more for this.

The amount of income they provide, is requested by you and should either be just the shortfall between the cost of care fees and the person’s ongoing income, or alternatively the full cost of care. The income can and should, be paid directly to the care provider (care home or care agency) as this makes life simpler, and more importantly means it can be paid TAX FREE.

Immediate Needs Annuity will help pay care fees indefinitely

Once set up the "income" continues indefinitely and can also be arranged to increase each year in line with any care home or care agency fee increases, taking away any worries over money not lasting.

Immediate need annuities are also portable. So if you start receiving care at home but then need to move into a care home, you needn’t worry, the income can simply be transferred to the new care home albeit, depending on costs of care, it may need to be topped. This can be done by either by doing a further annuity or paying any new shortfall from savings. Either way the annuity income will still continue for life.

Who are Immediate Needs Annuities most suited to?

These care fee plans are ideally suited to those who:-

  • Need to pay for their own care and not entitled to free NHS Continuing Healthcare
  • Are receiving care at home, or are needing care in a care home
  • Want the certainty and peace of mind that care fees can continue to be met for however long required
  • Want to cap the cost of care by paying a one off premium to protect any remaining savings will be preserved for future inheritances
  • Don’t have a high attitude to investment risk and want the certainty and annual escalation of income that only an immediate needs annuity offers
  • Want to avoid ever needing to pay for their own parent’s care should their parent outlive their own savings
  • Are either professional or unconnected Powers of Attorney (such as solicitors) who clearly see their main objective is to secure the care of the person they are representing
  • Sole POA’s who are the only beneficiary of the person needing care and they want to ensure care would continue even if they died before the person receiving care

Benefits and risks of an Immediate Needs Annuity


  • Ensures continuity of funding as income is guaranteed for life.
  • No ongoing investment risk or reviews required and no ongoing annual management fees.
  • Single premium only – there no need for any additional premiums unless the amount of care required significantly increases.
  • Annual escalation of benefits (if chosen) helps ensures it continues to adequately meet escalating fees.
  • Provides Inheritance protection – as any remaining funds can then ring fenced for beneficiaries.
  • Tax efficient. Income paid by an immediate needs annuity is currently tax free (providing paid to a registered care provider) and for those liable to Inheritance Tax the premium paid immediately reduces any liable estate and therefore helps reduce or possible even avoids the estate paying as much IHT. Please remember Tax rules are liable to change.


  • Premiums are calculated by the annuity provider’s view of the medically underwritten life expectancy. Should the person needing care die prematurely and you have not elected to take any capital protection, you do not receive any refund. This, however, can to some extent be insured against by paying extra and taking the capital protection option.

Increasingly popular

Not surprisingly with the potential cost of care being so great, immediate need annuities are becoming increasingly popular.

How much do Immediate Need Annuities cost?

Immediate need annuities are all individually priced based on; the benefit amount you want it to provide, the options you chose- escalation and/or capital protection but more importantly age and medical history. Consequently it’s impossible to give you any figures here, but as specialist and impartial care fee advisers, we will be pleased to obtain the very best immediate needs annuity quotes possible, from ALL providers, free of charge and without any obligation. Why not ask us to obtain a quote today.

Advice on Care - The Immediate Needs Annuity specialists

Powers of Attorney and Inheritance Tax Planning are not regulated by the Financial Conduct Authority

Advice on Care – Immediate Needs Annuity specialists

We have been helping families find ways of paying for care ever since 2004 and have helped many by setting up an immediate needs annuity for them such as Mr JS of Cumbria who wrote to us recently about an annuity we set up some time ago to say...

Janet is still alive and the Care Annuity benefits are being received without any problems. The annuity has removed a significant worry from my list and enables me to reassure Janet about her financial situation with hand on heart. So it has been very cost effective in emotional and psychological terms. Thank you very much for setting it up for us.

Why not allow us to find out just how inexpensive an immediate needs annuity might be for you?

Our Quotation Promise:

  • We will obtain ALL possible care fee annuity quotes, Free of Charge and without obligation.
  • Once obtained we send you a summary to consider.
  • Only should you wish to arrange one would we discuss and agree advice fees, but until then, all quotes are obtained and supplied FREE OF CHARGE.


Please note: These plans are not offered direct by the insurers


Contact us

Head Office Address:
Advice on Care
267 Barrowby Road, Grantham, Lincolnshire, NG31 8NR

Southern Regional Office Address:
Advice on Care
Abbey House, 1650 Arlington Business Park, Theale, Reading, Berks, RG7 4SA

Telephone: 01476 589 567



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The information contained in this web site is for general information only and is not financial, investment or tax advice. It is also subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. If you would like to discuss a particular issue or generally ask us how we can advise on your particular situation then please contact us.

Advice on Care is a trading style of Keith Hargraves who is an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA register ( under reference 440703 and 440718.

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