Annuities to pay for nursing home fees or long term care

If you need annuities to pay for nursing home fees then can help you. We have long term care experts that find the best annuity. There are two types of annuity that you can purchase, one with your pension fund and the other with your own money.

Annuities to pay for nursing home fees or long term careNursing home annuity rates

It is a very stressful time when you need to purchase annuities to fund nursing home fees for a loved one. You need to ensure that you make the right choices. Getting it wrong or making the wrong choices can cost thousands of pounds in lost income. This is where you need a specialist independent financial adviser that is authorised and understands long term care and nursing home annuities.

Long term care annuities – immediate care annuity

The street name for long term care annuities is immediate care annuity, these annuities are purchased from your own funds, such as investments or perhaps from the sale of a property. If set up correctly by a financial adviser these immediate care annuities can be very tax efficient.

Get financial advice when purchasing annuities for nursing home fees or long term care

Always seek professional and independent advice when considering purchasing annuities for nursing home fees or long term care annuities. Firstly an adviser will search the entire market to find the best immediate care annuity rates and secondly he/she will make sure that they are set up in the most tax efficient manner.

The nursing home or long term care annuities are purchased life annuities.

Where can you get advice on immediate care annuities?
You can

Case study impaired annuities

An excellent way of showing the benefits of impaired annuities is to show you a real life case study example. Mr B came to us via a referral from one of our satisfied customers.

Mr B’s pension fund was worth £207,947 and was recommended by a friend who had previously purchased an annuity via our independent specialist annuity service. One of our experienced independent financial advisers (IFA) spoke to Mr B and completed a financial circumstances and medical questionnaire.

The medical questionaire uncovered the fact that Mr B, 6 weeks previously had  had a mini-stroke and was also taking prescribed medicine for Diabetes type 2 as well as high blood pressure and cholesterol. His pension company were offering him an annual pension of £8,921. The IFA sent the completed medical questionnaire to all impaired health annuities providers and received quotes ranging from £10,153 to the highest of £11,020. Providing Mr B with an additional £2,099 each year for the rest of his life. As you can imagine Mr B was delighted and so glad he had taken the trouble to shop around for better annuity rates.

This simple case study demonstrates the advantages of shopping around and checking to see if you qualify for impaired annuities.

impaired annuities

Enhanced annuities sales continue to break records

The sale of enhanced annuities has again increased and now make up a third of all annuities sold. These enhanced annuities are bought by retirees that take the trouble to shop around and use the right to the ‘open market option‘.

According to Towers Watson, consumer interest in taking out enhanced annuities – which provide bigger pensions for those with serious medical conditions or with negative lifestyle factors such as weight, smoking and occupation – is set to continue. Enhanced annuities, also known as impaired life annuities, make up over a third of all annuities sold (by premium volume) in the open market in the UK.

These enhanced annuities can quite often get up to 40% plus for those that do take the time to see an independent financial adviser and complete a medical information questionaire. There is a real apathy overall in the retirement options sector with most retirees just accepting the quote from their pension provider. Industry figures say two thirds do not bother to shop around and are therefore missing out on these enhanced annuity rates.

Adam Benson, Independent Financial Adviser at annuity specialist Retirement Solutions said, “I have seen significant increases to retirement income of the clients that have come to me exercising their open market option, as IFAs we know the right questions to ask and can often get 30 to 40% increases in the rates they were offered by the pension provider they saved with. In my opinion not enough people are using the open market option and are therefore missing out on enhanced annuities.”