I have heard that you can buy a Deferred rather than Immediate Needs Annuity is that correct?
A Deferred Annuity is still a form of Immediate Needs Annuity as the term “Immediate” refers to the fact that you need care now rather than at some future stage.
Providing you don’t want the benefits or income from any annuity to commence straight away, yes you can defer the start and this will make premiums cheaper. You can defer payments for normally 12, 24 or 36 months. However you need to appreciate that the premium is still requested at outset, not just at the point when benefits commence. Also you cannot buy any capital protection on the premium.
Consequently, if you buy a Deferred Annuity and unfortunately death occurs during any deferred period, you wouldn’t receive any money back, unless it happened within the Statutory Right to Change Your Mind period of 30 days. You will also need to pay any care fees during the deferred period from savings or investments.
If you would like a FREE no obligation quote on a deferred annuity as well as one where benefits commence immediately, complete our quote request form today and we will send you a medical form for completing and return to us.