Despite positive government noises following the General Election in December 2019 that there was a plan to tackle social care, the realisation that there is no quick fix means that yet again those with even a modicum of savings (£23,250) will be responsible for paying thousands of pounds in care fees.
One of the options available to self-funders, individuals who must pay their own care costs, is an Immediate Needs Annuity (INA). This is an underwritten annuity considering health, activities of daily living (bathing, dressing, walking etc) and age. For an initial capital cost, the annuity is paid gross (no tax) directly to a registered care provider whether care is being delivered in a care home setting or within the home. If you like, an insurance option offering peace of mind to both the care resident and their families that funds are unlikely to run out; particularly if a contingency fund is cash is made available too.
A positive development in this market, is that National Friendly have joined an expanding band of insurance providers now offering INA. This means that in the last 12 months or so, the number of companies in the INA market has doubled. In addition, common sense has prevailed and a single point of contact for gathering medical information has been re-established. Medicals Direct Group will coordinate the reports from both the G.P. s surgery and care home so delivering a speedier underwriting decision and annuity cost from the insurance company.
As mentioned, the INA offers one possible solution to a self-funder. Other options plus assistance from both the State or local authority may also be available.
If you would like to understand how you might self-fund care fees either for yourself or a loved one, then please contact either Peter Magliocco or Matt Bond, fully accredited members of the Society of Later Life Advisers (SOLLA).