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Immediate care plan

An immediate care plan is usually a type of annuity with enhanced terms which reflect the reduced life expectancy of the annuitant due to poor health. You make a one off lump sum payment and in return receive a regular income, paid directly to the care provider, to either fully pay, or pay the shortfall, of your care costs. Payments are tax free if paid directly to the care provider.

They are suitable for people who are being cared for whether in a care home or at their home, and does not tie the annuitant to a particular home or care agency as payments can be redirected to a new care provider if required.

The plan can have a form of life cover attached so if the plan holder dies early there will be some return to the estate.

Immediate care plans can be arranged by attorneys acting for donors under a Power of Attorney and also by "third parties" such as relatives who are contributing to the care costs of people receiving local authority support..

The cost of an immediate care plan will depend upon:-

  • The amount of cover required
  • The individuals age
  • Indexation level, if required
  • Whether the benefits are paid for life or a restricted term
  • Any capital guarantee
  • Frequency of payments, (monthly, annually) payment in advance or arrears
  • Current state of health, failure of ADL's(activities of daily living)

If you would like to find out more or obtain a quotation please contact us.