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Elderly parents
Original poster

Care annuity

36 replies

GardenersDelight · 09/02/2024 16:43

Hi following a stroke my mum was deemed to have lost capacity. So after 8 weeks in hospital she moved into a care home last week
Luckily my brother and I both have lasting power of attorney and are now looking into buying a care annuity and wondered if anyone has any experience of them
Thanks

OP posts:
Ametora · 11/02/2024 17:06

NoBinturongsHereMate · 10/02/2024 13:06

There's almost no info in the OP about the mum's circumstances, so what is your reason for saying it's not appropriate?

Show quote history

Her age and that she has enough in savings to fund care for many years. She may not need care or if she does it may be LA funded and so the annuity would be a waste.

ShinyAppleDreamingOfTheSea · 11/02/2024 15:49

I know that my brother got one for my mum but not to the full amount of her care home fees as she had money still coming in from pensions/savjngs/attendance allowance. The price will depend on individual age/health information.

It is a bit of a gamble but whilst it is true that the state will pay for care if your relative runs out of savings, they are unlikely to pay the full price of one of the nicer care homes .

Mosaic123 · 11/02/2024 14:45

You can get a quote or two and think about it.

MoralOrLegal · 10/02/2024 13:53

As with all annuities it's a gamble. You are betting against the actuaries that your DM will live long enough that the annuity pays out more than it cost. The actuaries normally win, so have a good think before committing.

I bought a large annuity for my DF as he comes from a very long-lived family. It paid off years ago (he's now 96)... and he still has the bulk of his capital. But most people lose that bet, otherwise the companies wouldn't offer them...

I'm afraid it really does depend on the prognosis. Not an easy decision to make, either way. Good luck, OP.

Original poster
GardenersDelight · 10/02/2024 13:49

Thanks for replies
Shes 83 in March has survived breast cancer 5 years ago, become frail over last few years has degenerative spinal condition
Assets are approx 260k savings 300k in her bungalow and 21k pension
We just are so unsure about long term prognosis and are paying £1300 a week

OP posts:
Whatevershallidowithmylife · 10/02/2024 13:09

For us my aunt had to live 5 years before it would break even. She lived 5 years and 2 months. We also managed to have a no increase clause for 5 years which was helpful and saved a good few thousand.

NoBinturongsHereMate · 10/02/2024 13:06

Ametora · 09/02/2024 21:05

Not appropriate for your mum
What funds/equity does she have
The LA will pay one it gets to a critical point-has she been assessed?

There's almost no info in the OP about the mum's circumstances, so what is your reason for saying it's not appropriate?

Ametora · 09/02/2024 21:05

Not appropriate for your mum
What funds/equity does she have
The LA will pay one it gets to a critical point-has she been assessed?

Gardencentrevoucher · 09/02/2024 20:54

It seems like it wouldn't make sense unless someone is generally well at the time they are bought and you're expecting them to need many years of care. Otherwise the premium might be too high compared to the annual payments.
If anyone with more knowledge can recommend how to assess the cost vs benefits I'd be interested to learn more

JennyMule · 09/02/2024 19:20

I sometimes purchase them for clients if an IFA advises that doing so would be in the client's best interests.
I'm not sure what you need to know, but iirc we typically have to provide life expectancy/medical information.
It's only worthwhile for a very small proportion of my clients (the majority simply spend their income and capital.)