Care Annuities
One particular beneficial use of an annuity is to provide the
necessary
income to meet the ongoing cost of care for a close friend or relative.
With people being responsible for paying for their own care if they have assets of just £21,500 England, £22,750 Scotland or £22,000 Wales (2007/8) (including the value of your home should you be the last person who needs care) and with increasing ability to preserve of life, the cost of care can very quickly erode peoples capital forcing them into possibly having to find alternative care.
As any duration of care will be unknown, it makes sense to guarantee ongoing provision of care by purchasing a care annuity, as the last thing anyone wants is for the person in need of care to run out of money and be forced into having tomove to a cheaper home or having to reduce the amount of care they receive at home.
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