What happens if I buy an annuity to fund my mother’s care and she later receives NHS Continuing Healthcare?

Once purchased an immediate needs annuity cannot be cashed in or surrendered but the income does continue for the rest of the insured life so even if they become eligible for free NHS Care at a later date, it will continued to be paid but as your care provider would no-longer need you to pay for your care, the annuity provider will arrange for payments to be paid into your own bank account instead. So you will never lose the benefit provided but it would then be slightly taxed.