Questions and answers

What type of people take out these Immediate and Deferred Care Plans?

These plans are taken out by people who are about to enter a care home or who anticipate going into a care home at some point in the future and want to make some provision for taking care of the cost. The Partnership Care Fees Payment Solution provides some reassurance for both the care home and the person needing care that a guaranteed regular income will be paid for a person’s care for the rest of their life.

Care Prepared is just like any other insurance policy in that people take it out to help with care fees in the event that they should require care in the future.

Is a medical required?

A medical examination is not required for the Immediate and Deferred Care Plans.

Clients choosing Care Prepared may be required to undergo a medical examination and, if this is the case, Partnership generally pay the costs.

Why are Partnership's care plans good value?

Many people underestimate how long they will spend in care and therefore do not make adequate provision to pay for it, often relying on their savings. The Partnership Care Fees Payment Solution provides the reassurance that an income will be paid to help cover the cost of care for the remainder of the client’s life, regardless of how long that may be. Plus, because Partnership underwrites each case individually, they can receive a much better level of income than might be offered to them from elsewhere.

Capital Protection and Capital Protection Plus are available as separate insurance policies that can be taken out in addition to the Immediate Care Plan. They enable clients to guarantee the return of a lump sum to their estate or beneficiaries when they die, either within the policy term (Capital Protection) or at any time (Capital Protection Plus).

Why take out a Care Prepared policy?

It’s a fact that we are living longer and long term care is something that more and more of us will need in later life. As with any other insurance policy, Care Prepared can offer the policyholder peace of mind. Should they need care in the future, it guarantees to pay out a pre-agreed income, which will be fixed at a person's individual rate.

Are there health restrictions?

There are no health restrictions when purchasing an Immediate or Deferred Care Plan. Care Prepared does, however, require the applicant to be healthy and, dependent on their age, gender and the amount of income they require the policy to provide, they may have to go for a medical examination before terms can be offered.

What happens if care is no longer required after taking out either an Immediate Care or Deferred Care Plan?

If care is no longer required, the Plan can be converted to a standard annuity (comprising an income and a capital element) and you would be liable for Tax on the income element. If you decide to do this, you will be able to convert it back to a care annuity to pay a registered care provider at a later date.

Does having a care plan affect any means tested benefits that I am entitled to?

Before anyone goes into care, a means tested benefit assessment should be carried out by their local authority to identify any benefit that they should be receiving and any shortfall that may exist. It is important to note that any income being received may affect eligibility for grants and allowances.

If I die early into the plan will any capital be returned?

If you selected the Capital Protection or Capital Protection Plus options when you took out your Immediate Care Plan, you will be able to protect a specified percentage of the amount you paid when purchasing the product.

Capital Protection is a decreasing term assurance policy that protects up to 75% of the plan purchase price and pays out any amount remaining to the client’s estate or beneficiaries, if they die during the policy term.

Capital Protection Plus is a whole of life insurance policy that pays out a specified amount to the client’s estate or beneficiaries on their death, regardless of when that occurs.

There is no option to get capital returned with the Deferred Care Plan or the Care Prepared policy.

How do I apply?

You (or an enduring Power of Attorney if you have one) should speak to your Financial Adviser in the first instance. If you do not have an adviser, click here for our guidance on how to find one.

Financial Advisers can visit the adviser section of the website here for further information and to download application forms.

Partnership always aims to provide a quotation within 48 hours of receipt of the request.