18/10/2012
A care fees annuity is designed for people who need, or will certainly soon require, residential care. These annuities are meant to cover the on-going increasing costs of long term care when the person with the annuity starts to require full time residential care or nursing home care. The insured, pre funded long term care insurance route available of paying for nursing home fees is not really an option since there is a need here for immediate care, and hence the annuitant is effectively an uninsurable risk for pre-funded insurance policies.