Is the Solution an Immediate Care Plan or Deferred Care Plan?

It seems that the perception is that the cost of providing long term care continues to increase. The only way to offset those rising costs is create a plan as much as possible or else the costs can become quite overwhelming. Without careful planning out of resources, it is easy to lose control over your assets and lose your entire life savings to long term care costs. There are a variety of different payment options and solutions that can be considered before long term care is ever needed. Being proactive is perhaps the best solution to offsetting costs that are inevitable. While the costs can’t always be avoided, there can be a plan set in place long before that care is needed and that plan can really help to soften the blow that long term care costs can create.

One of the key aspects of long term care is that the costs and fees are never ending. The costs are on-going and simultaneously feel like they are ever increasing. Residential care home fees can range anywhere from £300 – £700 per week. Add to this other costs such as personal expenses, cost of trips etc. and the amount can be quite overwhelming. Without proper planning for care costs, it is possible to lose all your savings and even your property – leaving you without any security at a time when you need it the most.

Care fee plans are one option that can be useful as you determine how to pay for care. They allow you to put a cap on how much you spend on care. By taking out insurance on your care costs, you can ensure that your assets are protected and you can still pay for care. This works especially well for anyone who has valuable property or other assets that could be lost should care expenses take over all available cash. These care fee plans function much like any other insurance based product in that they pay for your care in exchange for a lump sum premium. The returns are based not only on age and health but also offer specific features that are unique to the care market. There are different types of care plans – such as immediate care plans and deferred care plans. Immediate plans are suitable for people who are already in care and need immediate help with payments. Deferred plans are suitable for those who wish to secure future payments by investing a lump sum just now. Deferred plans work for those individuals who are fairly certain they will need care in the future and want to safeguard themselves against losing any assets once they do enter care.

There are a variety of other care plans available as well as some other products that can help secure funding for care that may be needed in the future. For example, one fairly popular option is the care investment bond. Another option is an equity release scheme. Equity release works for those consumers who own a home or property and want to use the value of that property to secure payment of their care costs. This helps the consumer to retain their home while they are alive but yet use the value to offset costs. Equity release essentially allows the homeowner to capitalize on the equity already tied up in the home. This means that the homeowner can use the value built into your home without the need to sell the property. For anyone who is looking to stay in their home for the duration of the care, this solution seems to work pretty well. However, it does require the homeowner to think about the consequences once they have passed, including if they ever intended on passing on their home to a beneficiary of any kind.

Long term care payment solutions usually involve a significant portion of savings, assets, and income. These decisions affect not only you but also any potential beneficiaries. So, whether it is a care plan you are considering, or something else, it is important to seek professional and independent advice before making any big decisions. It is never too early to start considering all of the options, especially if it is safe to assume that you will, in fact, need long term care at some point. Being proactive in the planning process is really the best and most effective way to ensure that you can both comfortably pay for your care while also comfortably still enjoy the last years of your life. A professional advisor can help you determine which assets you have at your disposal and which will prove the most helpful in paying for the care that you will need.