A Deferred Care Plan could be suitable for you if:
The Deferred Care Plan is an annuity which will pay a regular, tax-free* income to your registered care provider. Payments are guaranteed and do not depend on investment performance.
You choose how long you want to defer the care payments for – anything from 1 to 5 years. The longer the deferment period, the lower the cost of the Care Plan.
When deciding whether or not to opt for deferment, you should consider that if you die during the deferred period your estate will not be reimbursed with any of the money you invested in your plan.
If, once the payments have started, you leave care at any point the income will be paid directly to you, rather than to the care provider, but it would lose its tax-free status. However, it can be converted back to being tax-free should you require care again in the future.
Care fees can increase over time due to inflation. If you want to protect your investment against the effects of inflation you can consider:
If you die in the first six months of making your investment a percentage of the capital you invest will be returned to your estate / beneficiaries. That percentage depends on how far into the six month period death occurs.