Funding Your Care
If your circumstances dictate that you must finance your own care it's essential to seek advice right at the outset. Experience has shown that once settled in a care home and receiving good quality care, fees may have to be met for several years. Taking appropriate action at the outset can alleviate many of the financial worries long-term care can bring with it.
For example, some older people worry that they will not be able to leave the inheritance they so wished for their family or, if their money runs down they might have to move to lesser accommodation or ask the family to top-up fees over and above what the local authority might pay. Apart from being extremely distressing for all involved these worries can be detrimental to the older person's health and well-being.
The Advice Process
Many people fail to take full advantage of State support or make decisions without fully appreciating the consequences. NHFA advisers who understand the complexities of Local and Health Authority support and DWP benefits will ensure you are made aware of your entitlements as well as what appropriate financial products are available to sustain the affordability of your chosen care. To view non-means tested State support click here.
NHFA local Care Fees Advisers will advise on all these issues whilst preparing a personal and confidential report clearly illustrating the different options for meeting your care costs over the medium and long term. All you need do is share with us the information we need and we will do the rest. You are never under any obligation to implement any of the recommendations. Care Fees Funding Advice Application Form
Why Seek Specialist Advice?
The Financial Services Authority (FSA) have stipulated that anyone providing financial advice in connection with funding long-term care must have the proven knowledge and ability to do so. This ensures they understand how complexities of the long-term care rules, regulations and State benefits fit in with general financial advice. All of our advisers hold the long-term care qualification, CF8, to demonstrate competency to advise in this area.
What are the financial options?
The financial products appropriate for meeting care costs vary according to an individual's age, health, required income and financial circumstances. We aim to identify financial products that deliver returns significantly above those provided by deposit based savings but without taking undue risks with capital.
Ideal financial products are those that can provide a regular income and incorporate flexibility to meet any future changes in care needs. These could be fee increases or the additional cost of more intensive care.
The ultimate aim is to ensure that all relevant State help is received and then enable any remaining care costs to be met for life whilst, as far as possible, preserving the person's original capital and with that their independence, dignity and, as many wish, the ability to leave an inheritance. NHFA firmly believes that financial security is an essential ingredient in providing older people with a sense of well-being at what can be a very vulnerable time of their life.
Immediate Need Care Fee Payment Plans
As interest rates remain low, leaving monies in Banks or Building Societies is rarely a suitable option for meeting care costs. A specially designed Immediate Need Care Fee Payment Plan is an alternative. As their name implies these are purchased to meet the cost of care when the need arises. These schemes offer a higher level of guaranteed income than can usually be provided by traditional investments or annuities and the advantage of tax-free income if paid direct to the care provider.
Their purchase often requires only part of the available capital being used to meet care costs allowing the remainder to be invested for growth and provide for an eventual inheritance, potentially capping the cost of care. In principle, for a capital sum, they provide annually increasing payments for as long as a person needs care making up the initial shortfall between existing incomes and care costs.
Providers of care fees payment plans medically underwrite the applicant/s, which means that the more impaired one's life is, the lower the cost. Prices can vary significantly between insurers depending on their assessment criteria. NHFA uses a common application form submitted to all companies to compare prices between the insurers.
Click here for more information on Care Fee Payment Plans
There are other financial products, which may be suitable for meeting care costs depending on individual circumstances and one's view on investment and risk.
The financial implications to be considered when paying for care require careful planning. Older people and their families are therefore advised to seek professional advice before taking on any commitment they are unsure of being able to afford over the long-term.
Further advice on the options for meeting care costs can be obtained by completing and sending to us your personal Care Fees Funding Advice Application Form or by calling our Care Advice Line: Freephone 0800 99 88 33
