Fee Payment Plans

These are specifically designed for people who need care. Similar to an annuity, they deliver a regular guaranteed tax-free income higher than can normally be achieved from traditional investments or annuities. Normally requiring just part of one's capital to purchase, they are a way of meeting care costs whilst potentially capping the cost of care.

Therefore, the more impaired the life the lower the cost. There are only a few companies that offer this product and their actuarial view of life expectancy can be quite varied consequently so can the plans price. To combat this and obtain the best possible price for clients NHFA uses a common application form and health questionnaire submitted to all companies. Saving time and energy in obtaining peace of mind.

Some Facts about Care

Fee Payment Plans

• Unlike ordinary annuities, terms are only marginally affected by interest rates.
• Prices can vary significantly through different actuarial interpretation of life expectancy.
• For a reduced cost, Deferred Care Plans can be purchased which begin payments from 2 years of purchase.
• Payments can be made tax-free direct to the care provider.
• Plans can be used to pay for care at home
• Care Fee Payment Plans can provide the certainty of a rising income for as long as a person needs care.
• Capital protection can be included for an extra cost.
• No medical is required. Underwriting is usually based on a GP report or care home's medical assessment.
• NHFA's common application form ensures that All providers can potentially offer terms thereby identifying the lowest priced plan available.

There are different types of payment plans which suit different types of people. The NHFA can advise you further on these but view any of the case studies to find out more:

• Immediate Care Plan and Investments - Gordon
• Deferred Care Plan - Delia
• Care Plan and Investments - Mabel

If you wish to download a pdf of this information, click here.