Residential care fees

A guaranteed regular income to help pay care fees. 

An Immediate Care Plan could be suitable for you if:

• You need funding for care to start immediately
• You have access to a lump sum to purchase the Immediate Care Plan
• You want the certainty of payments for the rest of your life.
• You understand that return of any money from your plan, if you die after the first 6 months, is only available if you select Capital Protection

How an Immediate Care Plan works

The Immediate Care Plan is an annuity which will pay a regular, tax-free* income to your registered care provider, starting immediately and continuing for the rest of your life.  Payments are guaranteed and do not depend on investment performance.

If, for whatever reason, you leave care at any point the income will be paid directly to you, rather than to your 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.

Protection against inflation

Care fees can increase over time due to inflation.  If you want help to protect your investment against the effects of inflation you can consider:

• Escalating benefits – when you buy the plan you can choose to increase the income you receive by a rate between 1% and 8% per annum. 
• Retail Price Index (RPI) – linking your Care Plan to the RPI would mean that the payments you receive would be based on the 12-month movement in the RPI 3 months prior to your anniversary date, with adjustments coming into effect on the anniversary date.
  Note –RPI linking selected in conjunction with the Escalating Benefits or Capital Protection options and income will reduce in the event of deflation.

Paying for an Immediate Care Plan

• You buy an Immediate Care Plan via a single one-off premium.
• Your premium is based on the monthly benefit amount you want as well as whether you elect to protect your investment against inflation or choose Capital Protection.
• It is also based on your age, gender and state of health at the time you apply. 
• All applications are fully underwritten so your medical history may also affect the premium. 

If you die in the first six months of taking out a Plan, 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.

Any income paid will be deducted from the capital amount returned.  If you wish to protect your investment for longer, you should consider Capital Protection.