First you should ascertain what help you can expect from the Government, you then need to consider these questions:
- What care do I really need – now and in the future?
- For how many years am I going to need this care?
- How can I best use any additional resources (eg my home) to meet the shortfall between my regular income (eg pension) and the cost of my care?
Insuring for your future care costs
Care fees insurance policies fall into two kinds: those that pay out now (Immediate Needs Care Annuities) and those which only pay out at a future date: say one, two or three years ahead (Deferred Needs Care Annuities). The deferred fees annuities are usually cheaper to buy and the longer the deferred period, the lower the purchase price of this policy.
The insurance company will only quote the terms and price on which it will be prepared to offer an insurance policy once it has taken your personal details and will also require a medical report. Your Independent Financial Adviser (IFA) can advise you more on this.
The advantages and disadvantages of the different types of care fees annuity is a specialist subject on which an IFA can give you more information and advice.