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Long Term Care Annuity

If you or a relative are paying long-term care costs, you may be worried about the money running out. Having a Long Term Care Annuity will help pay for these care costs and knowing that the arrangements are in place, will give you peace of mind.

What is a Long Term Care Annuity?

The Long Term Care Annuity is a long term care insurance policy provided by National Friendly, in which you invest a single lump sum in return for monthly income paid towards your care fees for the rest of your life.

The cost will depend upon how much income you need (typically the difference between the cost of your care and your income, such as your pension), your age, the state of your health and your life expectancy.

A long term care annuity provides:

  • A monthly income paid towards care fees for the rest of your life
  • Some control over the total amount you pay for your care
  • The option to defer care payments for one or two years to reduce the lump sum you will need to pay
  • 100% protection of your capital in month one and the option to protect part of your capital in months two to six should you die in this period
  • The option to increase the amount we pay for your care each year

You can choose for the income to go up each year to cover future fee increases or just cover those from your own funds.

Once purchased, there is no refund after the first 30 days unless additional capital protection is purchased so the risk it carries is that money could be lost if your care doesn’t last as long as expected.

What are the risks?

  • You could lose a large part of your capital if care doesn’t last as long as expected
  • You will need to pay any shortfall if the regular amount we pay is less than care fees
  • Any payments made to you rather than a care provider will not be exempt from tax
  • No cash in value
  • At the time of your death, you may have paid more than the policy pays out

The income is normally paid directly to your registered care provider and, if paid in this way, it will be tax-fee.

Who is this suitable for?

The plan is suitable for someone who needs care now and for the rest of their life. It is suitable for those with access to a lump sum which can be used to generate an income for the rest of their life and who could additionally afford to pay any shortfall in care costs.

Where can I find out more?

We have partnered with a firm of independent care funding specialists called Eldercare Solutions who can offer you a free initial telephone consultant to assess whether this plan is likely to be affordable and appropriate for your situation. You can call them on 0800 082 1155
or email

Find out more

Call Eldercare Solutions today and speak with a telephone consultant on 0800 082 1155 or email