Immediate Care Annuity - Cover The Cost Of Long Term Care

 

If a loved one can no longer care for themselves, making the right choices regarding their estate and providing for their long term care can be a pressurising and difficult decision.

Annuities for care home fees are therefore an important factor that you may be forced to consider seeing as the costs can be substantial. There are many different types of annuities, which is why shopping around for the most appropriate one for your needs is essential. Shopping around is known as the open market option and entitles anyone to obtain different quotes and rates from other providers before settling on a decision.

Annuities are based on life expectancy; a shorter life expectancy means the pension company do not have to pay for the person for as long, which consequently means they can offer higher annuities rates.

If your loved one is about to enter a nursing home, then you might consider annuities for long term care. This type of annuity usually has more generous and enhanced rates due to the fact that the person receiving the annuity is expected to have a shorter life expectancy because of being in a care home.

People in a care home or nursing home need extra funds to finance their long term care, “Immediate Needs Annuities” are therefore ideal for anyone in this position.

The annuities are also not liable for tax as long as they are paid directly to the care provider, meaning an even more generous income.

This annuity, like some other annuities, are paid out for as long as the person lives. This remains the case even if your loved one lives longer than expected.

The benefits of this type of annuity is that it guarantees peace of mind for the family of the person in care.  The family can be sure that their loved one is looked after without the worry of trying to raise finances for hefty nursing home fees.