Your IndustryJun 11 2015

Guide to Immediate Needs Annuities

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Approx.60min

    Guide to Immediate Needs Annuities

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      cisi-logo
      CPD
      Approx.60min
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      Introduction

      By Emma Ann Hughes
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      They may be able to claim some non-means tested state benefits such as the attendance allowance and, if they are a permanent resident in a care home and require nursing, they may qualify for a contribution paid by the NHS directly to the care home.

      If their assets are below, or subsequently fall below, this prescribed means-tested figure, and they meet the health eligibility criteria, then the local authority would start contributing towards their care.

      However, local authorities have a limit on what they believe care costs should be and will only top-up an assessable income, less a small personal expense allowance, such that it reaches their limited figure.

      Those who want to receive more expensive care will need a top-up.

      An immediate needs annuity is one way to ensure an individual does not end up with just basic care. This product is suitable for anyone in need of care on an indefinite basis and who wants certainty of payments for the rest of their life.

      The plan can only cover one person, but can be purchased by a third party.

      This guide will explore the different ways of funding care, the new rules being introduced to reduce the amount individuals have to cough up to pay for care and what impact the pension freedoms will have on this part of the market.

      Supporting material was provided by: Brian Fisher, long term care marketing manager of Friends Life; Dean Mirfin, group director of Key Retirement; Andrew Dixson-Smith, care fees adviser and director of Eldercare Solutions Ltd; Frances Ross, product manager at Partnership, and Stephen Lowe, group external affairs and customer insight director of Just Retirement.

      In this guide

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