Helping you to understand how to finance long-term care
At Oxford Aunts we have been helping thousands of families better understand how they can finance care of a loved one, whilst providing guidance on any funding they may be entitled to. If your care needs and financial circumstances mean you are not eligible for any social care funding or healthcare funding, then you will need to finance care yourself – this is commonly known as ‘self-funding care’. It is prudent for families to plan the financing of care for an elderly loved one as soon as is practically possible. This means you have more options as to how you can finance care –investments in bonds, realising savings, investing in property are just some options to save or invest for the future.
However, there are two specific care financing options available to those who are self-funding their care. Here we explain two options available to you.
A CARE FEES ANNUITY
A care fees annuity is basically an insurance policy to fund care fees. If you need long-term care you will have your needs assessed by a specialist who will determine what your forecasted care needs would be in the future. They will then determine a fee that would cover the cost of care for as long as it is required. A care fees annuity can then be purchased for a one-off fee and as and when care is needed the income from the plan is paid to your chosen care provider, whether that is a care home or you receive live-in care in your own home. The policy is exempt of tax under HMRC policy and is index-linked which means you are protected against rising inflation.
There are many financial organisations who offer care fees annuities. Oxford Aunts works in partnership with Symponia, a professional body representing over 120 financial and legal advisors who are all specialists in the area of financing private care fees. Working with a specialist advisor like Symponia gives families much-needed reassurance that they are getting the right advice that is regulated.
EQUITY RELEASE TO FINANCE CARE FEES
If you are a homeowner and 55 years or older, you could consider an equity release scheme. The scheme allows you to release equity in your property to finance the care you need. This means you can stay in the comfort of your beloved home and receive live-in care without having to sell your home to move into a care home and fund care home fees. There will be factors that impact the amount you will be able to draw out including the type of equity release plan, the value of your property, your age, health and lifestyle.
LOCAL AUTHORITY SUPPORT
Whilst you may have to self-fund the care you need, it is worth checking with your local authority to see if there is any financial support they can give you that will contribute to cost of care. There are discounts offered for council tax, disability allowances and an attendance allowance that families can access to receive care at home.
TALK TO US ABOUT YOUR LIVE-IN CARE NEEDS
Call our friendly and approachable care advisors today to arrange an assessment of your care needs. This will give you a better understanding as to the cost of live-in care. We can then help you to explore what financing or funding is available to you and your family.