care annuity - insurance against costs of dementia and calculating life expectancy

Sportacus

I'm looking to get this for my mother (81) who has been diagnosed. Still early stages and my mother is able to manage on her own atm, but this is only going to go in one direction. I'm contemplating paying £100k from my mothers savings to buy a care annuity that in three years would start paying out £3k a month for as long as she lives, and hoping that the remainder of her savings can cover any care costs before those three years.

Wondering though if it would be better to wait until my mother is actually in need of the £3k a month for care costs, and get a non-deferred annuity then?

Brie

So you are betting that mom will live at least another 6 years in order to get at least as much as your considering to buy now for your £100k?  

Does she have savings?  Income?  Is she in receipt of attendance allowance? Does she own her own home?

Do you know what it costs locally for care either at home or in a local care home?  £3k wouldn't cover care home fees and if mom needs a lot of help to keep her at home then it may very well not be enough for there either.  

Sorry - not really trying to sound all negative but just that there's other things to take into account.

jackieblack

Have you been given any idea about your Mum's likely life expectancy? If the annuity doesn't pay out for 3 years, then she'd need to live to beyond 87 to be 'cost effective'.

Different kinds of dementia have different life expectancies.
My Dad was diagnosed with vascular dementia in Sept 2021, aged 81. We were told people with vascular dementia often die of a stroke or heart attack and an average life expectancy for his age when diagnosed would be around 4-5 years . He died in January this year aged 85, having only spent his last 9 months in a care home as he wasn't able to manage alone at home after Mum died last summer.