Lifetime Care Plans
If you’re over 60 and have an illness, condition, or disability that leaves you needing long-term care later, you could buy a Lifetime Care Plan. Care is expensive but there are ways to prepare for those costs. If you want more information on paying for care, visit our How do I pay for Care? page.
If you need long-term care, there are Lifetime Care plans which can pay a one-off lump sum or monthly payments to help cover the cost of care.
There are also immediate care plans, also known as immediate needs annuity. The income from this type of annuity is tax-free if it’s paid directly to your care provider.
An annuity is a type of insurance policy that provides a regular income in exchange for an upfront lump sum investment. If you have any funds remaining in your pension pot, or you are selling a property, you could use this to cover your up-front cost.
Make sure you shop around for the best plan, many of them aren’t sold directly to you but through a financial advisor who understands your financial situation.
Care pension
A ‘care pension’ was proposed by the Government but this is still at the concept stage. The concept would allow people near retirement to take money from their pension tax-free to pay into a special insurance policy.
Page last updated: May 2023.
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