An Immediate needs annuity or "Immediate Care Annuity" is a specific type of insurance which guarantees to pay care fees indefinitely, removing any worries that money may run out.
Immediate need annuities are specialist insurance policies that anyone needing care, or their representative can purchase to provide a tax-free* income that can be paid monthly to your care provider to help ensure care fees can be met for the rest of your life, giving peace of mind and helping remove any worries that money may run out.
They are available from age 60 and there is no maximum upper age limit and are suitable for paying care at home as well as in a care home. Immediate Needs Annuities can either provide a level income, or by paying a little extra you can buy an escalating annuity where the annual benefits increase each year either by a requested percentage or by RPI to help offset increases in care fees. Such escalating annuities are the only way of paying for care which guarantees definite annual increases in benefits, but their advantages don’t stop there.
Providing the income is paid to a registered care provider the income an immediate needs annuity provides is also tax free.
How much Income do they provide?
Immediate need annuities can normally provide whatever level of income you request.
The shortfall being the difference between care fees being charged and any ongoing income from pensions and State Benefits such as Attendance Allowance you will continue to receive. This can easily and quickly be calculated using our instant Care Fees Shortfall Calculator.
Immediate Need Annuities are ideally suited to those who:-
Immediate need annuities shouldn’t be considered by those who may qualify for NHS Continuing Health Care or feel where the need for care is only temporary.
They are also NOT SUITABLE for this who care will be fully paid by their Local Authority or who just want to insure against the risk of possible needing care in the future where you need long term care insurance.
Immediate need annuities are all individually priced based on:
Consequently it’s impossible to give you any accurate figures but if you complete our quote request form our specialists Care Financial would be pleased to obtain accurate quotes for you FREE OF CHARGE from all providers.
If, however, you just want an idea, one provider Just has provided us with some idea as to what typical Immediate Need Annuity premiums MIGHT BE to provide £20,000 for different ages.
|Escalation 0%||Escalation 5%|
Source: Just 2018
Please remember these are only just examples and actual premiums will differ quite significantly, hopefully cheaper once medical details are provided.
Also Aviva, Legal & General or National Friendly can offer significantly different premiums – and may be substantially cheaper than these.
✓ Free no obligation quotes
✓ Impartial Advice - All providers quotes
Ask our specialists Care Financial to obtain your free comparison today
Please note: These plans are not offered direct by the insurers
Head Office Address:
Advice on Care
267 Barrowby Road, Grantham,
Lincolnshire, NG31 8NR
To receive every issue of our magazine by email, simply register your name and email address in the form below.
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.
© Copyright 2021 Advice on Care.