IT’S hard for any of us to sit down and think about what may or may not happen to us in the event of an illness, or, our needs when we are dependent on others, but exploring the need for Long Term Care annuity is something we can help you with.
The reason being of course is that you may need to consider paying for care in your own home or fees for a care home so you may need a regular income in order to pay for either.
You may wish to consider an immediate needs annuity which is a type of insurance policy which provides a regular income to you in exchange for an upfront investment. When this type of insurance policy is used for your long term care it gives you peace of mind that you have an income for life to pay for care costs.
When you contact Worldwide Financial Planning to ask about an annuity for Long Term Care, we will appoint you your own dedicated independent financial adviser. Your adviser will discuss with you all your annuity requirements. All of the advice we provide is tailored to your individual needs. We will work in partnership with you to find the very best solution to fit you.
How do we find the best long term care annuity for you?
As soon as we know what you are looking for, and have a clear picture of your circumstances, we will research the entire Long Term Care marketplace. Our research capabilities mean we will find the very best annuity there is for you.
We are a totally independent firm which means we have access to the entire marketplace. This even includes some specialist Long Term Care annuity providers who are not normally available to the public.
When you are happy with the annuity we have found for you, we will begin the application process. We will assist you with completing all forms which need to be completed and we will answer any questions you may have.
How does a Long Term Care annuity work?
An annuity for Long Term Care (sometimes referred to as an immediate needs annuity) works a little bit like a standard annuity – you pay a single premium contribution to an insurance company who then pay you an income.
With this kind of annuity, the income you receive is designed to help cover the cost of long term care, either in a residential home or your own home. If the income from the annuity is paid directly to the care provider it is tax free.
The cost of your annuity will depend on several factors. These include:
• Your age.
• Your health.
• Whether you are male or female.
• How much income you need it to provide to help cover your Long Term Care fees.
Your adviser will be able to give you a clear idea of how much your annuity will cost.
There are advantages and disadvantages to this kind of annuity.
Long Term Care Annuity – What are the advantages and disadvantages?
The main advantages are;
• It provides the security of a guaranteed income, so you can be sure that your fees or the fees for your loved one’s care fees will be paid.
• You will not face the possibility of savings or other assets being used up to pay for care so any remaining capital is protected.
• If paid direct to the care provider the income from the annuity is tax free.
The main disadvantages are:
• If the person receiving the income from the annuity dies soon after purchasing it, the original capital will be lost, unless protection against this has been taken out which is at an extra cost. You may also not have enough capital to purchase an annuity which will cover your income requirements.
• The income the Long Term Care annuity provides will be counted as income during any means test for benefits (other than for Attendance Allowance and any other benefit which is solely for a disability). This may mean you do not qualify for certain benefits.
• Once an annuity has been taken out, the arrangements cannot be changed. Although you do have the option of purchasing further annuities if you should need it to cover Long Term Care costs.
Our team has a wealth of experience in Long Term Care planning so we know how important it is to listen and understand your unique needs, assess your circumstances, help you identify your requirements and help you decide the best kind of annuity as a financial solution for you. We will also advise you on what your options are if you choose not to go with an annuity.
We are also here for you should you need advice or assistance with other aspects of your personal or business financial planning such as pensions, investments which you may hold or Equity Release schemes. If you have any queries at all about any of the above, please do email us on info@wwfp.net as we are here to help you and your family.