Purchase immediate needs annuity for care home fees?

Joey_Soap

I thought this thread was due for an update.

Shopping around for the lowest fees to take out an immediate needs annuity has proven interesting to say the least. 3.5% to 4% of the policy premium seems to be "the going rate". A small number of IFAs quote a minimum fee that is charged, but on further questioning, it turns out they make that charge for processing the paperwork for the minimum fee. Then they charge another 3.5% of the policy premium in addition. That's a bit shady, but asking the right questions soon flushes that out into the open.

I am not ready to make a recommendation here publicly in the thread just yet. But I have found a SOLLA registered IFA that I am proceeding with to get quotations. The agreed fee is a per cent age of the annuity premium which seems pretty much the only way IFAs conduct this business. The IFA I have engaged is not so far from me, North West England and is very responsive by email. The IFA has agreed a fee that is around half what seems to be "the going rate" amongst IFAs for this business. I will update further when I have received the annuity quotations and agreed which is the best policy.

So far, so good. I won't publicly name the IFA at this stage, but if anyone is looking for this kind of annuity policy and wishes to message me then I will share the details of the IFA by message. It seems that by shopping around, several thousand pounds saving is there for the asking.

Thanks for the ongoing interest in this thread.