Immediate Need Annuity Premiums

Immediate Need Annuities are dedicated tax efficient financial policies designed to help meet care fees.

In exchange for paying a single lump sum, Immediate Care Plans pay an agreed and indefinite regular payment towards your care fees. They therefore help prevent anyone needing to pay for their own care ever outliving their savings.

Not only this but when paid directly to a CQC registered care provider, the benefits will also be made tax-free for the rest of your life.

How Much Do Immediate Need Annuities cost?

Immediate Need Annuity premiums are calculated individually, based on your age and health as well as how much you want the plan to pay and whether you want the benefits to increase each year to help keep pace with increases in care fees.

This means its impossible to get any instant accurate quotes, but to help one company “Just” has kindly provided us with the following broad estimates of likely average immediate need annuity premiums for an annuity providing £20,000 p.a.

Source: “Just” 2025

Alternatively, if you would like to see what average premium we have arranged for any specific benefit amount, you may like to try our new instant annuity premium calculator. 

Please remember:
The above quotes are only examples and  have only been provided by one company, others may be cheaper, so it would pay to request accurate quotes.

As Care Fees Increase Every Year -Should I Buy An Escalating Immediate Needs Annuity?

Whilst it might seem logical to consider an escalating annuity because care home fees will normally only ever increase, depending on a number of factors including; whether the amount of money which would remain after buying a level annuity would be more than adequate to fund future increases in fees, your outlook for how long care may be required, and whether you are only considering annuity to extend how long money can fund care for rather than to fully cover any shortfall, you may simple prefer a non-escalating annuity because:

• It will be cheaper.
• It will initially preserve a more money and avoid losing too much if care is only required for a short period.
• The annual increases in income offered by an escalating annuity may take a good number of years to compensate for the increased outlay so you may never benefit from paying extra.

Consequently, to help you decide, we will automatically request both non-escalating and escalating annuities FREE OF CHARGE for you to consider.

Should they be affordable and you would then like us to advise you, after fully understanding the person needing care’s personal as well as financial situation, we will analyse the quotes and make a recommendation as to whether a level or escalating annuity might be best.