There are now various options available to you in seeking to finance your care in a simple, sustainable way. Most families are keen to ensure that they don’t have to worry about what might happen in the future whilst also protecting as much of their existing capital as possible. Some of the financial policies available include Immediate Care Plans (also known as ICPs, Immediate Annuities or Care Fees Payment Plans) and Equity Release (whereby you can raise capital, income or a combination of the two from your home whilst continuing to live in it).
Immediate Care Plans
Immediate Care Plans (also known as ICPs, Immediate Annuities or Care Fees Payment Plans) are tax efficient financial policies which are specially designed to cover all or part of a person’s care fees. Once put in place, a plan pays an agreed tax-free amount at regular intervals, directly to the care provider, for the remainder of the person’s life. An upfront lump sum is required to purchase such a plan which is calculated depending on age and health. The benefits of an Immediate Care Plan are that they provide peace of mind that care fees will be covered in the future and they enable a person to have financial independence, dignity and choice of where they receive care.
Equity release is a method through which elderly people can financially benefit from the value of their home whilst they continuing to live at the property. Equity release is becoming a popular and realistic way of enabling people to receive formal care in their own homes, delaying or preventing altogether the move into alternative accommodation.
Source: Symponia (www.symponia.co.uk).