Buying a care funding plan


Nobody relishes the idea of very old age. For some, it will eventually mean moving into long-term care. Sadly, whether care happens at home or in a care-home, many people will have to contribute towards the cost of their own care, and some will have to pay for it completely.

 

How do I buy a care funding plan?

You’ll need to talk to a professional financial adviser first and foremost as there’s a lot to think about when setting up a care funding plan. When you start thinking about state benefits, savings, other annuities, income from investments, your outgoings, emergency money, the cost of care in itself… there’s so much to think about, that it really does pay to get professional advice.

What will a professional adviser do for me?

A professional adviser will ask about your circumstances. He or she will have plenty of experience, looking for the bigger picture – taking into consideration all of the obvious things that could affect how much money you may need to cover your care needs, but also factoring in some of the things you may not think about.

A lot of information is needed at the initial meeting – things like details of your care costs, income, outgoings, assets and investments – and having this information to hand can help speed up this process.

Anything else?

There’s the medical underwriting questionnaire. A professional adviser can talk you through this and help to explain why they're re-exploring some areas of your health and lifestyle in more detail.

They’ll also take you through care funding plan options available, including whether you want to defer your care income payments and whether you want to protect your income against the effects of inflation.  And, they’ll get quotes from a range of insurance companies such as Just to find the best deal for you.

Above all though, a professional adviser working with you to set up a plan like this will give you the peace of mind you need to be sure a care funding plan is going to do exactly what you need it to.

So where do I find a professional adviser?

You can talk to your local authority.  Alternatively, you’ll find an impartial listing of professional advisers in your local area on thepfs.org or unbiased.co.uk – look specifically for those advisers who have experience arranging long-term care funding.