When it comes to long term care, individuals may have to pay for it wholly by themselves, or at least some of it.
- What exactly is long-term care?
Long-term care is necessary when the condition is chronic. It is not covered by private health care insurance which only covers acute conditions. It is necessary when individuals cannot get on with activities of daily living.
NHS Continuing care is a package that meets and pays for a patient’s nursing, social and personal care needs, and covers their accommodation costs if they live in a care home. But what do you do if you don’t qualify for it and you need to pay your own fees?
- How can I pay for Long Term Care?
You will need to fund the full cost of your care home fees if you don’t qualify for NHS Continuing Care funding and if you have assets worth more than £23,250.
If you are not eligible for Continuing Care and you have assets worth between £14,250 and £23,250, you will have to make a contribution towards the cost of your care.
You can pay for Long Term Care one of three ways:
You can pay for it yourself. You can sell your assets like your home, or land to do so. There are ways to release equity from your home to pay for this as well with a Lifetime Mortgage or Home Reversion Scheme.
You can also buy long-term care insurance. These plans will help you fund your long term care when the time comes. There are four types of this available:
- There is an immediate plan available that requires a large lump sum to be given, and then like an annuity, provides income to pay for your care.
- There is a deferred plan that pays out later than an immediate one so it is less expensive.
- You may buy a Pre-funded plan that will pay for care but only that. It isn’t for retiring to a home while you do not need any help with activities of daily living.
- The Cash Care Plan is an income based plan that pays cash for a set period of time for specific mental and physical problems.
Paying for this care may mean that you have more choices available to you, but the expenses must be fully considered if you want to go this route. It is important to plan your finances properly to avoid financial pitfalls.
This article was written by Cheselden.co.uk, the Continuing Care review specialists. Visit their website urgently if you believe you have wrongly paid your care home fees.