Immediate Needs Annuity. Care Fees Protection

Immediate Needs Annuity

An immediate needs annuity is designed to cover the shortfall between your income and the cost of your care for the rest of your life. The price of a plan is based on how much income you need and the insurance company’s assessment of how long you’re likely to need it for. If you aren’t eligible for state funding, care fees could use up nearly all of your assets. The basic individual nil rate band for inheritance tax is £325,000. Care fees could use up all bar £14,250. [2019-20]

The cost will depend on your age, current annuity rates, the level of income e you need and your health – life expectancy.

They have a significant advantage as the money is paid directly to the care provider and so is not taxed in your hands.

It is important to shop around. This is a specialised advice area and we have the experience to help you select the best annuity for you or your loved one.

They may be right for you if

  • You want peace of mind that the regular income can be used towards the care costs
  • You are already facing, or about to face, care fees – either in a home or in your own home.
  • You have the available money to invest
  • You want to cap the cost of your care

They may not be suitable if

  • You don’t need to pay for care ‘now’
  • It is likely to be a temporary stay
  • You may need your money back in the future
  • You could be eligible for NHS Continuing Care Funding

We can help you work out your options. Find the best way to cover your fees if possible. For more information and an initial chat , please contact us

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