Deferred Care Plan

If you need care straight away you may have the funds available to cover the cost initially. But if you’re concerned about provisions in the long term, for a single, lump sum payment you can take out a care plan now and defer your income payments for up to five years. The advantage of this is that it reduces your premium without compromising the amount of income your care plan will eventually pay.

If you’re concerned about care fees becoming more expensive in the future, you can choose to have the income from your plan increased (or ‘escalated’) annually by between 1% and 8%, in 1% increments, after which the rate is fixed. Although it is not guaranteed to cover the full amount, this should go some way towards helping ease the issues of inflation.

Suitable if you:

• have funding for the short term but need security against care costs for the remainder of your life
• are looking to reduce the costs of the full Immediate Care Plan premium, but still require security and peace of mind
• need immediate care from a registered provider, either at home or residential, on an indefinite basis
• want certainty of payments for the rest of their life