Crucially, the amount of equity taken out is capped, and with the rent received being used to meet the interest on the loan and any other outgoings concerning the property, this means the debt does not grow, unlike with other retirement options, such as expensive equity release.
On top of that, the applicant has peace of mind that the income payments from the Care Property Bond will continue for the rest of their life.
Probably most important of all, the applicant knows their loved ones will inherit the net equity in the property when they die. And if they decide to continue letting out the property until the loan is repaid, they will inherit the property debt-free.
However, while we believe the Care Property Bond will help many people at what is a difficult time, we understand taking out a financial product of such magnitude is a big decision.
That is why we insist applicants are first assessed by specialist adviser My Care My Home, which will determine what level of care is needed. After that, applicants must seek advice from a financial adviser to see if the Care Property Bond is the best option for them.
At Shaw Insurance, we realise it may take another generation to completely solve the care crisis in this country.
But we believe the Care Property Bond will help many people live out their final years with as much peace of mind as possible. To us, that is priceless.
