Partnership : Deferred Care Plan

Product profile

Description 

For a single, lump sum payment you can take out a care plan now and defer your income payments for up to five years. The advantage of this is that it reduces your premium without compromising the amount of income your care plan will eventually pay.

For

• People who require care on an indefinite basis now, who have the money and want to reduce their premium by self-funding their care initially but want to guarantee that an income will be paid to help fund the cost of care at a nominated date in the future for the remainder of their lives
• Who can pay for own care for between 1 and 5 years

• Age 60 or over

• Wanting care in UK, any other EU country, Channel Islands, Isle of Man, USA,Canada, Australia or New Zealand

Cover

• Pays out all monthly benefit to care provider

• Care in a home or in your own home

Basis of cover

• If death occurs in the first six months of the policy, a proportion of the purchase price will be refunded (net of fees already paid to the care home) on a sliding scale, 50% in months 2 and 3, and 25% in months 4,5 and 6

• If you die within the first six months of the Plan a percentage of the capital invested will be returned

• Payments direct to care provider are tax-free

• Monthlyor four weekly  payments

• Benefits start at end of deferred period

• Benefits continue until death or care no longer needed

• Single premium

• Minimum premium £5000

• If care no longer needed, can convert to an annuity

Options

• You choose the amount

• Deferred period between one and five years 

• Escalator  of benefits - various percentage increases available

   

Last updated: 21 April 2009