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Financing options for live-in care
We work with trusted care finance experts, to help you make the most of your savings and finance your immediate and long term care needs. There are different ways in which to finance care including immediate care plans and equity release.
Working with experts in care fees planning
We understand how worrying planning the financing of long-term care can be - at a time when you are already facing difficult decisions about care. We work with Symponia – specialists in financial care planning for the elderly and we would be delighted to put you in touch with one of their local experts.
If your capital and savings and/or income push you over the means test thresholds for state funding, you will generally need to be responsible for funding. However, with careful planning it may be possible to structure your finances without having to worry about the future.
Immediate Care Plans
ICPs are dedicated tax efficient financial policies specially designed to cover all, or part, of the cost of your spouse, parent or relative’s care fees. The plan will pay an agreed tax-free amount at regular intervals, directly to the home care provider, for the rest of their life. Benefits can increase over the years to help keep pace with care fee increases. A lump sum is required to purchase such a plan and this is calculated individually on age and health.
Equity release to pay for care at home
You may be able to financially benefit from releasing an amount of equity in your home. It’s a realistic way to raise capital, income or a combination of the two while continuing to live in your home.
Paying for care at home
Eric and Alma had been married for over 65 years. Sadly, Eric’s deteriorating health meant that a move into a care home seemed an inevitable end to their life together. Alma and the family wanted him to stay at home, but knew that this wouldn’t be an easy decision, as Eric needed specialist personal care and Alma was unable to provide this. As a potential solution, the family considered having a live-in-carer and both arranged a meeting with The Good Care Group. Following our assessment we knew we could deliver to a home care package to meet their needs.
Expert advice from Symponia
To help them explore the best way to fund the care they then talked through the option of equity release with their local Symponia member, who suggested that the whole family became involved in the discussions.
A key decision was how much money should be released?
Did the family just take enough for one year and continue to draw down each subsequent year until the maximum sum had been exhausted?
Exploring an Immediate Care Plan
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.