Choosing an IFA for an INCA (care fees annuity)

[Deleted User]

I see there are actually only 4 insurers that provide these https://www.immediate-needs-annuity.co.uk/about/ina-providers/, and only accessible through IFAs.

Should I just pick say 5 IFAs from the list here https://societyoflaterlifeadvisers.co.uk/accreditation, and ask them all for quotes (which will I'd assume be the same from each provider, only difference would be the IFAs fees)?

lisyloo

Personally I think the advice they give is worth a massive amount and could save you a lot of money/hassle.
So advice would be high on my list and not fees (which mostly won't be massively different).
So I would talk with a couple to start with and see whether I liked any of them.
If I had question after talking to a couple and wasn't satisfied then I'd look at more.

Ibrahim5

You are dealing with 2 lots of people here. An IFA will charge you thousands for filling in a few forms and telling you that by buying an annuity you will probably lose, which is true. The companies involved are only interested in making sure that they take more money off you than they give back. When I asked they wanted 7 years of fees, while the average stay in a care home was 2 years. They love people who say "They are as fit as a fiddle. They will live forever". If you are "as fit as a fiddle" you don't move into a care home. They are hard-nosed businesses who will carefully use statistics to make sure that they are not likely to lose. Occasionally people do live longer than expected and people beat the company.

LHW99

As with any insurance @Ibrahim5

It is my understanding that these annuities are only available via IFA's, so if you need / want the insurance, you pay the price for peace of mind.

Ibrahim5

I think it's slightly different. I have never paid more than a few hundred for any insurance policy. This is gambling at a higher level I would say.

LHW99

Standard house / motor insurance policies have a large takeup and benefit from cross-subsidies.

Care needs annuities have to be individually underwritten, based on individual medical details and are sold to a (very) small subset. Hence costs are greater.

wjr4

[Deleted User] said:

I see there are actually only 4 insurers that provide these https://www.immediate-needs-annuity.co.uk/about/ina-providers/, and only accessible through IFAs.

Should I just pick say 5 IFAs from the list here https://societyoflaterlifeadvisers.co.uk/accreditation, and ask them all for quotes (which will I'd assume be the same from each provider, only difference would be the IFAs fees)?

Correct, find a few local IFA firms who can help, go for an initial meeting with them then decide who you prefer. Remember to find a holistic financial planner and not just someone who will ‘sell’ you an annuity. It’s all about the overall financial objectives and situation and an annuity may not even be suitable.