Long Term Care is the term given to a range of products and options for funding care costs of the elderly, either for care in their own home or, more usually, when residential or nursing care is required.

At Foresight we have developed a commonsense approach to care funding that compares the relative advantages of funding via a range of cash or deposit based instruments or investments against the cost of purchasing a Long Term Care Annuity.

A Long Term Care Annuity works in much the same way as a traditional pension annuity where a set amount of income is paid for the remainder of the annuitant’s life (the person receiving care) in exchange for a lump sum payment.

These are specialist annuities that reflect health status of the care recipient and perhaps their reduced life-expectancy to provide an income that is typically in excess of that normally paid under a traditional annuity. In addition, where the income payments are made direct to the chosen care provider, these are not subject to income tax in the normal way and thus a greater ‘net’ return is usually achieved from a given capital sum than might otherwise be the case. Long Term Care funding is an area requiring specialist advice and you should contact us for further information before making decisions regarding this important area.