In the later years of retirement many people need help with activities of daily living such as washing, dressing, feeding, toileting, mobility and travel. Eventually you may need residential care or move into a nursing home. This care is generally referred to as long-term care and obviously will need to be paid for but the unknown factors are:
- Whether you will need long term care
- When you will need it
- How much will it cost per annum
- How long you will need to pay for it
A few specialist annuity providers have now developed long-term care annuity products because they recognise the suitability of an annuity as a way to meet the ongoing cost of long-term care. The annuity payments can be made direct to the registered care provider, so the annuitant has no tax liability.
As usually the age of a person entering into long term is high, their life expectancy is relevantly short, which means the annuity provider will be able to pay higher annuity rates. A the same time because of the age the retirees are also likely to qualify for aenhanced annuity rates, which will again lead to an improved annuity income.
Long-term care annuities are just one of the funding choices available to retirees entering long-term care. They are cost-effective, an excellent way of ensuring a guaranteed lifetime income to offset the cost of long-term care, and provide peace of mind.
If you are interested in providing for your long-term care, or if you wish to enquire on behalf of a friend, please complete our enquiry form or call our freephone number.