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How do I go about paying for care at home?
February 21, 2024

If you are thinking about or are already receiving care at home, you may not have looked into what help is out there and what your entitlement to benefits might be. You may also be considering the best way to go about paying for care at home, whether that’s from savings, pension income, or other resources.

At Mumby’s, we know our clients want reliable and trustworthy financial advice from those who understand later life issues to help them find the best solution to fund their care.

Mumby’s is an Affiliate Member of the Society of Later Life Advisers (SOLLA)

Society of Later Life Advisors SOLLAAs an Affiliate member of the Society of Later Life Advisers (SOLLA), Mumby’s helps to connect clients and their families with trusted, accredited financial advisers who understand the financial needs of those in later life.

Meet Harj, SOLLA-accredited later life specialist

Harj Gill, a SOLLA-accredited later life specialist

Chartered Independent Financial Adviser with Sandringham Financial Partners, a national firm of Independent Financial Advisers, Harj Gill, is a SOLLA-accredited later life specialist (Society of Later Life Advisers).

Harj advises and helps families who are receiving care or are interested in understanding more about their options as they approach the need for care. He has helped Mumby’s clients manage their finances effectively to help pay for their future costs of care. Harj has written this article to increase awareness among families of the various options when it comes to paying for future care.

Understanding the full picture to advise on optimally managing finances when paying for care at home

Whatever your circumstances, Harj can advise you on the best way to manage your finances when paying for care in your own home. However, before advising you, Harj needs to understand a bit more about you including:

      • Are you taking advice for yourself, or are you an appointed attorney or trusted friend helping someone?

      • Are you aware of the benefits and how to claim those you may be entitled to, such as Attendance Allowance?

      • Have you had a care needs assessment?

      • Are you aware of any financial assistance that might be available from the local authority, how this works, and whether you would be eligible?

      • Are you aware of NHS Continuing Health Care?

    As you would expect, no one individual or family situation is the same. So, he needs to understand the full picture before providing the right advice for you. When involving wider family members, he encourages including them in the discussions where appropriate.

    How can you secure the cost of care at home?

    Whilst there are several options to consider, one that isn’t widely known about is a Long-Term Care Annuity, also known as an Immediate Needs Annuity (INA).

    An INA uses a lump sum to buy an insurance policy that provides an income for the rest of your life. The plan is designed to help pay for your care for as long as you live. It involves completing a health questionnaire and a GP report. This is to gain a full understanding of your current health and for the insurers’ actuaries to make an informed decision on what they think about your life expectancy.

    How much is an INA and what happens to it when you pass?

    The cost of buying an INA plan and what happens to the plan when I die are probably questions you may be thinking about.

    The INA is usually bought as a top-up to what you could afford to pay from other available resources. The shortfall in income needed becomes the amount required for a care annuity to pay out directly to the care provider. As long as the annuity is paid directly to a CQC-registered provider, such as Mumby’s, it pays out without any income tax deducted.

    In the event of your death, some of the initial capital paid into the annuity could be returned to the estate, if the plan includes ‘capital protection’. This is one possible feature and can impact on the cost of the plan. A qualified adviser will be able to assess your circumstances and discuss your needs in full.

    What about Equity Release?

     

    Those receiving care at home often consider taking money out of their property using equity release. If considering this option, you will need advice from a specialist qualified later life accredited adviser who can walk you through all the things you need to think about before doing this.

    Trustworthy finance advice and guidance every step of the way

    Advising on long-term care can take time. Harj advises every step of the way to guide you through what can be a worrying time in your family’s lives. He would welcome a conversation around your concerns and to help you make the best possible choices around paying for care options at home.

    You can contact Harj, SOLLA Accredited Adviser, with any questions or for a non-obligatory initial meeting on 07876 484960 or h.gill@sandringham.co.uk  https://client.sandringham.co.uk/advisers/harj-gill/   

    Useful Links

    Guide to Funding Live-in Care

    Lasting Power of Attorney – A Guide

    Will social services pay for a live-in carer?

    Can I get funding for dementia care?