Investments for care funding Immediate Care Plans, Care Annuity Deferred Care Plans Advance Funding Protecting Assets Deposits

Deferred Care Plans

Deferred care plans are similar to immediate care plans in that they guarantee to pay a benefit for your lifetime. Where they differ is that a benefit under a deferred care plan does not start until a waiting period has expired that was agreed at the start of the plan .

Get an illustration of the cost of a deferred care plan

For example, if you had care fees of £2,500 a month and income of £1,000 a month you might decide to choose a benefit of £1,500 a month, increasing at 5% a year. You might choose a waiting period of 36 months which will result in a significantly lower premium than an immediate plan for the same benefit.

For the next 36 months you will pay for your care from your other assets, almost as if no care plan had been purchased. In month 37 the care plan will start to pay £1,736 (your £1,500 a month benefit plus annual increases) and this will be paid, with further annual increases, for your lifetime.

A deferred care plan allows you to guarantee an income for your lifetime for a lower initial premium than an immediate care plan.

The Advantages

The premium will be lower than for an immediate care plan
The income is guaranteed for life after the waiting period has expired
Once payable, the benefit will be tax free, providing it is paid directly to a registered care provider.
In most cases the loss to your estate if you die in the early years will be less than for an immediate plan.

The Disadvantages

If you die during the waiting period you will receive no benefit from the plan and no refund
The cost of funding the care during the waiting period and the premium for the plan may be higher than the premium for an immediate care plan.

The Risks

If you die in the waiting period you receive no refund or benefit from the plan

Where would you like to go now?

Get a care plan cost illustration

Deferred Care Plans in use - case study

Immediate Care Plans

Investments for Funding Care

Care Planning Report

Care Planning Service

We trust that you will find carefeesadvice.com useful and informative. We have made every effort to ensure that the information contained is clear, up to date and accurate. However, nothing on this site should be relied upon when making care or financial decisions, nor should anything on this site be regarded as financial advice. Our care fees planning service can provide you with specific help and specialist, care based, independent financial advice. By proceeding through this site you accept that carefeesadvice.com, the Care Fees Advice Agency and Financial Care Consultants Limited cannot be held responsible for any actions you take as a result of the information held on carefeesadvice.com. All information given relates to England. Whilst most of the principles remain the same, some benefits and benefit levels are different in Scotland, Wales and Northern Ireland. We are happy to provide details for these regions on request.

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