Care home fee annuity versus pension annuity?
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Organista said:Marcon said:Organista said:Talking to someone who is thinking of buying a care home fee annuity for an elderly relative using the proceeds from the sale of his previous residence, I am left puzzled as to the difference between a care home fee annuity and any other annuity such as that from a pension. Why are there apparently only 4 providers of care home fee annuities whereas there are lots for pension annuities.
Thanks for any explanation.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Marcon said:Organista said:Marcon said:Organista said:Talking to someone who is thinking of buying a care home fee annuity for an elderly relative using the proceeds from the sale of his previous residence, I am left puzzled as to the difference between a care home fee annuity and any other annuity such as that from a pension. Why are there apparently only 4 providers of care home fee annuities whereas there are lots for pension annuities.
Thanks for any explanation.0 -
westv said:
There aren't lots of providers for annuities. There are only around 6 or so.
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Organista said:Marcon said:Organista said:Marcon said:Organista said:Talking to someone who is thinking of buying a care home fee annuity for an elderly relative using the proceeds from the sale of his previous residence, I am left puzzled as to the difference between a care home fee annuity and any other annuity such as that from a pension. Why are there apparently only 4 providers of care home fee annuities whereas there are lots for pension annuities.
Thanks for any explanation.
While your savings funded annuity will only pay the sum agreed so if the golf club fees go up by more than the agreed rate of indexation you would have to fund the shortfall
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Organista said:Marcon said:Organista said:Marcon said:Organista said:Talking to someone who is thinking of buying a care home fee annuity for an elderly relative using the proceeds from the sale of his previous residence, I am left puzzled as to the difference between a care home fee annuity and any other annuity such as that from a pension. Why are there apparently only 4 providers of care home fee annuities whereas there are lots for pension annuities.
Thanks for any explanation.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
There are several good hits if you search for 'care home annuity', including:https://www.moneyhelper.org.uk/en/family-and-care/long-term-care/immediate-needs-annuity
These mention how you *might* be able to link one to actual care home costs.
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Care annuities are a more complex product - they depend very strongly on the medical details of the individual. (While some pension annuities pay out more based on health factors, for many people they are still comparatively straightforward and based on age as the main factor.)
When considering care annuities in the past for a relative, I would have liked some kind of 'ball-park' estimates of what it would cost - £100K, £200K, £300K, £400K - before spending the fairly substantial time and effort to get all the medical information needed to get full quotes - but couldn't find anywhere that would do any kind of estimate at all without the full medical info. The numbers sold are presumably so small they can't even provide rough numbers based on "when we sold similar products to other 90 year old men, the costs ranged from X to Y"
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starving_artist said:westv said:
There aren't lots of providers for annuities. There are only around 6 or so.
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westv said:starving_artist said:westv said:
There aren't lots of providers for annuities. There are only around 6 or so.
Just
Scottish Widows
Aviva
LV
Legal & General
Canada Life1 -
af1963 said:Care annuities are a more complex product - they depend very strongly on the medical details of the individual. (While some pension annuities pay out more based on health factors, for many people they are still comparatively straightforward and based on age as the main factor.)
When considering care annuities in the past for a relative, I would have liked some kind of 'ball-park' estimates of what it would cost - £100K, £200K, £300K, £400K - before spending the fairly substantial time and effort to get all the medical information needed to get full quotes - but couldn't find anywhere that would do any kind of estimate at all without the full medical info. The numbers sold are presumably so small they can't even provide rough numbers based on "when we sold similar products to other 90 year old men, the costs ranged from X to Y"1
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