More competition in the immediate care annuity market

We were pleased to learn this morning that Just Retirement is planning to enter the immediate care annuity market.

An immediate care annuity provides a regular, tax-free income to pay care fees.

Payments are made directly to your registered care provider and continue for the rest of your life.

You buy an immediate care annuity with a lump sum payment and the cost is based on your medical history and life expectancy, so full medical underwriting needs to take place to understand the cost.

The new long-term care annuity from Just Retirement will bring the total number of providers in this important market to three, alongside Friends Life and Partnership.

Just Retirement chief executive Rodney Cook said:

“I am pleased to announce Just Retirement will be entering the long term care market during the next few months, initially with an immediate needs annuity solution. Further details will be published before the launch date.”

Greater levels of competition are important in this marketplace to ensure that those at the point of entering care receive the best possible deal.

Three providers offering immediate care annuity products highlights the importance of using a specialist care fees adviser to shop around on your behalf and secure the most competitive deal.

Even with only two providers active in the market, we often find a big difference between the prices quoted from each after full medical underwriting has taken place.

With an increasingly ageing population and greater certainty over future legislation around capping care costs, we expect to see more insurers enter this important market in the near future.

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