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.
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 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%|
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.
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Please note: These plans are not offered direct by the insurers
Find out all you need to know about care fee annuities or care plans. Click here.
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