Immediate needs annuity question

If your MIL is deemed to need a home she is in trouble.

She is already there (sorry I thought that was what immediate meant).
She did have dilerium in hospital and apparently that means her chances of dying during the next year are high (but she hasn't).

Keep her immobile by doing everything for her and she won't live long.

She's quite immobile due to the arthritis she's had for 50 years, but my experience doesn't fit what you've said.
People failing to look after themsleves get infections (UTIs particularly for women), dehydrated and mal-nourished).
She's in a good home so being well fed, watered, medicated and any issues treated very quickly by nurses on site.
She's been in their about a year now and only had one UTI and not even a sniffle.
Her sister is 95 and still alive.
We thought she might follow her husband of 60 years but she's forgotten he's dead so not suffering normal grief.

The average stay in a care home is 26 months.

Yes, but not everyone is average. Her sister is still going at 95 and is 4 years older.


But thanks for you opinion. That is my gut feeling also.

bearing in mind that some of the money wont be used for 6 years

But it probably will, because in 6 years she'll probably be dead.


I am thinking of using some longer fixed term savings accounts after checking out the conditions with the providers should she die before the end of the term.


If I were a risk averse person and looking out for my own self-interest then I'd say that no-one is going to sue me for not taking an anuuity or not taking investments.

fred246 wrote: »

The problem is that no-one can tell you exactly how long she will live for. The financial people will play on that uncertainty and they could benefit nicely. If your MIL is deemed to need a home she is in trouble. She has lived way over normal life expectancy. Someone told me that at 94 you had a 50% chance of living the year. Get her in a home full of bacteria. Keep her immobile by doing everything for her and she won't live long. Immobility is a massive killer. Greatly underestimated. So sell the house. Put the money in high interest accounts and wait. Fantastic advice from an anymous person on the internet.

I'd argue that in a home they are eating better (proper meals with veg as opposed to Kershaws frozen meals ...), less likely to have a fall (which is often the precursor to rapid deterioration), being more closely monitored, have company and activities rather than sat watching TV all day, being bathed regularly, etc so may actually be at less of a risk. My MiL has perked up enormously in the few months she's been in a home,is more mobile, talkative and generally appears healthier.

Of course an annuity is a gamble but the family feel that the piece of mind knowing that no matter how long she lives (not that I personally necessarily see her longevity as an upside...;) ) there will be no issue with the fees or for her to have to move homes is worth the risk of potentially losing out (and it's her money anyway).

We realise the insurance company must generally win (otherwise they wouldnt be in the game) but they don't actually know the individual and can only base the premium on statistics and third party reports so who actually has a better idea of how robust a person is.. them or the family?

In MiL case the statistics indicate that as an 86 year old women she has a 50% chance of living beyond breakeven point of 92. Given how's she's improved and that theres nothing obvious that's immediately life threatening we feel that's pretty reasonable odds.