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Immediate Needs Annuity

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Immediate Need Annuities – What are they and why use them to pay for care?

Immediate need annuities are specialist insurance policies that anyone needing care can purchase to provide an indefinite tax-free* income that can be paid monthly to your care provider to help meet care fees and remove any worry that money may run out.

They are available from age 60 and there is no maximum upper age limit.

The income which can either remain static or escalate each year can be paid either to a care agency - if care at home is required, or to any care home and *providing they are registered with the Care Quality Commission (CQC), the income provided by an Immediate Needs Annuity is paid tax-free!

Escalating annuities are currently the only way of paying for care which provides indefinite annual increases in benefits, so if you want peace of mind and security, it certainly pays to investigate just how much one would cost.

How much Income do they provide?
Immediate need annuities can normally provide whatever level of income you request, either the full cost of care or to minimise any loss should death occur early- just the shortfall or difference there is between the cost of care and ongoing pension and benefit income.

  • The full cost of care, or to help keep the cost down
  • Just the shortfall in income you have.

Who are Immediate Needs Annuities most suited to?

Immediate Need Annuities 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 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 certainty of income
  • Are professional Powers of Attorney (such as solicitors) and want to secure their clients care.
  • 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
  • Need care and have an Inheritance Tax Liability as the premium paid will not only help pay their fees, but the premium will immediately reduce their taxable assets and thereby help reduce any future IHT liability.

Who shouldn’t consider an Immediate Needs Annuity?

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.

How much do Immediate Need Annuities cost? - Immediate Needs Annuity Premiums

Immediate need annuities are all individually priced based on:

  • the benefit amount or income 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 accurate figures but if you complete our quote request form we 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%
Age Residential Nursing Residential Nursing
75 £115,326 £100,293 £137,648 £117,846
80 £108,640 £100,937 £127,286 £117,310
85 £94,396 £87,325 £107,601 £98,793
90 £80,549 £71,430 £89,155 £78,541
95 £65,438 £63,002 £70,880 £68,049

Source: Just Adviser website December 2021

Please remember these are only just examples and actual premiums will differ quite significantly with other insurers potentially offering significantly different premiums –which may be substantially cheaper than these.

For this reason, we would be happy to initially obtain ALL providers quotes for you absolutely FREE OF CHARGE and without commitment. To request your quotes simply click below and provide your details.

Immediate Need Annuity Quotes

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Ask us to obtain your free comparison today call


or call 0800 180 4336

Advice on Care - your immediate need annuity specialists








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

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