To help the family gain additional peace of mind, the adviser suggested that they explore the possibility of an Immediate Care Plan. They calculated the income, and compared that to the expenses, which had to take account not only of the household costs (which largely remained unaltered) but the care costs.
After assessing Eric’s health and mortality the cost of the Immediate Care Plan, with a built-in automatic 5% annual escalation, was £92,000. Eric & Alma used equity release to buy the Immediate Care Plan. As their property was valued at over £500,000 the release of equity was just under 18.5% of the total value. The family also consulted with a solicitor with expertise in equity release that ensured that they understood all the implications of the transaction.