As Mr Baker has capital over £19,000 (including the value of his property) he will not be entitled ...
As Mr Baker has capital over £19,000 (including the value of his property) he will not be entitled to any funding from his Local Authority ' although it is possible, if his savings fell below £19,000, that his house will be disregarded for the first 12 weeks.
Should Mr Baker need care, it is highly likely he will also be entitled to Attendance Allowance, a non-means tested, tax-fee benefit provided by the Benefits Agency, he will also be prepared to sell his house, and with no other expenses all his income can be put towards his fees.
To cover the shortfall, Mr Baker could purchase a pre-funded care plan with a nationally-recognised provider.
He could choose to fund his plan by using regular premiums, a single premium or a combination of both.
A combination premium with AXA Lifetime Care's Diamond Plan would consist of a single premium of £5,551 together with a regular monthly payment of only £39.87. This would safeguard the £150,000 ' the value of his home ' for as long as he needs care. Meaning he can leave an inheritance and still have £26,449 in the building society for rainy days.
Although the single premium is non-returnable, it would automatically give him guaranteed rates, the monthly premium will be reviewed after 10 years, five yearly after that, and premiums will cease at 90 or at the time of a claim ' whichever is sooner.
The plan purchased would give access to the monthly benefit after the failure of only two activities of daily living (ADLs), automatic annual increases in line with the RPI, together with the unique services of a dedicated care counsellor.
