We then have a meeting with the client, or his or her representative, or both, and we discuss the options which are available in this particular case. The quotes are structured to indicate the life expectancy which the underwriters have estimated for the client. This is then compared with an independent table of life expectancies to assess the discount which is being offered in this particular case, and the client and his or her family can decide if they feel that the discount is appropriate. If the client is happy at this stage then we go ahead with this solution. If not there are alternative approaches which can be pursued. Up to this point our advice is free.
We can obtain a copy of the medical report and this can be checked to ensure that every ailment and disability has been recorded. Discrepancies can occur at this stage, and when corrected can sometimes lead to an acceptable price. If after this stage we are still not able to obtain an acceptable quote, perhaps because a firm diagnosis of the client’s condition is not available, then we may decide that an annuity in spite of the guaranteed cover it offers is not appropriate to this particular case. We can then consider investment options designed to provide as high an income as possible from a low risk portfolio.
The outcome is that clients can ascertain in general terms the best solution for themselves without incurring any expense, and will only start paying for advice once that solution has been chosen.
Clients looking to fund packages of care in their own homes may have to raise capital to meet the cost of this and this can be done using a lifetime mortgage. Clients who are looking to move to a care home may have a house to sell. It is possible to obtain a bridging loan to cover the cost of the annuity whilst the house is being sold, which can save the cost of fees during the sale period.
Advisers who arrange long term care annuities and lifetime mortgages are required to hold specific qualifications. We hold all required qualifications for the advice we give.
