The costs of long term care can be daunting when considered over a period of time. Care home fees are the biggest component of care costs, but depending on the type of care needed, there could be significant costs associated even with home care. Here is an overview of funding for care and different options for self funding.
There are ways to manage care costs in a way that you can protect your assets and still pay for care. A financial advisor with specialist knowledge in care funding could help you understand different options and choose the best possible option to suit your needs. The main ways open for care funding are Long Term Care Insurance Plans.
Insurance care plans are annuities and a way to ensure that long term care costs are met for as long as you need, in exchange for a lump sum. There are different types of care plans: deferred care plans, immediate care plans, and cash plans. Another way to meet with the costs of care is by taking a release of equity from the home. It is important to seek independent specialist advice before making important decisions related to your finances.
By using a release of equity in this way, enables you to utilise something you have worked long & hard for to come to your aid.
The NHS provides a service known as continuing healthcare for those that meet the eligibility criteria. NHS continuing healthcare is independent of your financial status and is available to all those who pass the comprehensive needs based test.
NHS continuing care could be a part of a care plan that involves other funding including council and self funding.
The local council provides help with care costs for those who qualify. By assessing your financial means the state works out whether you are entitled to receive state funding and how much if at all, you’d be expected to contribute. Thousands of people across the UK are left with the prospect of having to fund either in part of full for their long term care.
Self funding means that you depend entirely on your assets to pay for care as long as it is needed. While the cost of care depends on a number of variables – the fact remains that long term care, especially residential long term care, is expensive, and becoming more so. It is not uncommon for people to lose their entire life savings and property to meet the cost of long term care.