Immediate and Deferred Care Plans

AN OVERVIEW

Regular guaranteed income payments to help your client pay their Care fees

Our Immediate and Deferred Care Plans are long-term insurance products, designed to pay a regular, tax-free income to your client’s Registered Care Provider and help meet the costs of their care for as long as they live.

The amount payable is agreed at the outset. Both products offer different benefits, so can be used for a variety of their needs.

Our two solutions to funding long-term care are both designed for people aged 60 or over, already receiving care (or will be within the next 12 months), and want to pay for it without any investment risk or threat to their eventual legacy.


Immediate Care Plan

  • For those who need funding to start immediately, and want the certainty of a regular, guaranteed income for the rest of their life;
  • Can also include Capital Protection to repay a minimum percentage of the original investment if death occurs within a pre-agreed period.

Deferred Care Plan

  • For those who can afford to cover their own care fees for up to five years, but would like the certainty of an income for life that starts at the end of the selected deferred period.

 

Product Features

Feature Immediate Care Plan Deferred Care Plan
Age range 60+
Purchase price Minimum £5,000
Money Back Guarantee Yes – percentage of capital invested, less income paid, is returned if death occurs during first six months from the plan commencement date*. Yes – percentage of capital invested is returned if death occurs during first six months from the plan commencement date*.
If a client dies within the first 12 months of their plan commencement date, and Covid-19** is recorded on the death certificate as a contributory cause of death, we’ll return 100% of the premium less any income paid. This is a temporary feature to be applied automatically to all new care plans purchased since 14 May 2020 until further notice.
Capital Protection (if chosen as an option) Yes – 1% to 75% of investment  is paid if death occurs within a pre-agreed period. (A separate decreasing term assurance policy is issued). No
Escalation (if chosen as an option) 1% to 8%
RPI (if chosen as an option) Yes No
Income payment frequency Four weekly
Monthly
Four weekly
Monthly

*The money back feature comes as standard with these policies.
**Also includes Coronavirus or SARs-Cov-2 as a contributory cause of death.