Helping you make informed decisions to fund long-term care.

You could consider securing a guaranteed income with a care funding plan to pay for your care fees. This is also known as a ‘long-term care annuity’ or ‘immediate needs annuity’. With these, you use a lump sum to buy an insurance policy that provides a regular lifetime income. This income is to help fund your care fees for as long as you live.

There are two options when it comes to care annuities. The main difference is whether you need: Care funding now (immediate funding), or Care funding in the future (deferred funding).


An Immediate Needs Annuity (INA) is a dedicated tax efficient financial policy designed to help towards the payment of care fees. In exchange for a single lump sum, INAs pay an agreed tax-free* amount at regular intervals, directly to a registered care provider, for the rest of that person’s life.


With a Deferred Annuity the income doesn’t start immediately. Instead you select when you want the income, either 1,2,3,4 or 5 years in the future. The longer the deferred period, the lower the cost of the plan. However, you’ll need to be able to pay your care fees until the deferred annuity income starts.


Paying for care using a Care Annuity, may be suitable if you:

  • Have health issues
  • Are receiving care either at home or in a care home – or you’re about to start
  • Want reassurance that your care fees will be paid in the future, and/or
  • Don’t want to take any financial risks.


Paying for care using a Care Annuity, may not be a good option if you:

  • Only need care for a short time
  • Might want your money back in the future, and/or
  • Are likely to be entitled to local authority or NHS continuing healthcare funding, which is free.