Our care funding plans
A care funding plan is designed to give you peace of mind for the future – knowing that you have made arrangements to help pay for your future costs of care.
More about our Care Funding Plans
Our care funding plans offer a wide range of solutions to meet your individual needs.
All of our Care Funding Plans provide a guaranteed income stream for the rest of your life, and are designed to help meet the cost of your care.
Where the income is paid to a Registered Care Provider, we are able to pay it tax free, although this is of course dependent on your circumstances. If your circumstances change, we can change who receives the income, although you may lose the tax free status if the new recipient is not a Registered Care Provider.
Our Care Funding Plans offer a number of additional options that allow you to structure the plan to suit your circumstances.
Protection against rising fees
Like the price of all goods, the cost of Care Fees can increase over time due to inflation.
This is why you can choose for the income payable from your Care Funding Plan to increase each year as well, either by:
- A fixed percentage of up to 8% each year, or
- In line with the Retail Price Index (RPI) – this links the income from your Care Funding Plan to the general UK rate of inflation.
Protecting your investment in the event of your early death
A Care Funding Plan guarantees to pay an income for the rest of your life. This income will then stop when you die, and no further benefits will normally be payable.
However, if you die within the first six months of the Plan, we will return a proportion of the amount you invested to your Estate and/or Beneficiaries. The amount returned depends on how far into the six month period your death occurs, as follows:
Month of Death
|Month 1||100% of amount invested less the total amount
paid from the Plan
|Months 2-3||50% of amount invested less the total amount paid from the Plan|
|Months 4-6||25% of amount invested less the total amount paid from the Plan|
You can also choose to protect up to 75% of your investment (less any benefits paid from the Plan) for the duration of the Plan, although this will increase the cost of the Plan.
Protection against the cost of care in later years only
If you are happy to fund the cost of your care in the short term, but are worried about the impact if you continue to need care for many years, then you may want to consider a Deferred Period.
Under this option, we agree to start income payments at a specified date, up to 5 years in the future. Once income starts, we then guarantee to continue paying the income for the rest of your life.
This option can significantly reduce the cost of the Plan, but you will have to fund the cost of your care yourself during the deferred period.
How to buy our Care Funding Plan
Because Care Funding Plans are considered long term contracts, and cannot normally be cancelled once they have been purchased, we wouldn’t want you to purchase one unless you were absolutely sure that it was the right thing to do.
For this reason, we only sell our Plans through regulated financial advisers.
If you don’t already have a financial adviser, you’ll find an impartial listing of professional advisers in your local area on thepfs.org or unbiased.co.uk. Alternatively, SocietyofLaterLifeAdvisers.co.uk contains details of advisers specialising in this area.