Self funding long term care

By Financial Advice & Services Limited

Self funding long term care costs can be a daunting proposition, and seeking independent financial planning advice can be beneficial, in helping families, or Attorneys appointed under a Lasting Power of Attorney, consider the options and agree a sensible financial plan to meet ongoing care costs.

When we first meet clients who potentially have care needs, we undertake a full assessment of their capital assets, together with their income sources, to work out the shortfall between the cost of care and other essential costs, and their income. Once this has been identified, we consider a range of investment options to make best use of available capital.

One option that can bridge the gap between income and care costs is to purchase an immediate needs annuity plan. This is where capital is paid to a provider, who in turn will pay a monthly level of income direct to the care home. Each plan is individually underwritten, with the premium payable dependent on the age, health, life expectancy and care needs of the individual.

In our experience, the premiums on such policies can be very