Mrs Roberts' situation means that if she needs to go into a home, then she will pay most, possibly a...
Mrs Roberts' situation means that if she needs to go into a home, then she will pay most, possibly all, of the bills herself. She knows this and wants to make sure the costs do not stop her leaving what she wants to whom she wants. A Future Assured plan from Norwich Union can provide the extra income Mrs Roberts needs to achieve that.
It is care home costs that concern Mrs Roberts, so let us start our calculations there. The total annual cost ' including nursing care ' would be £28,600, less the 'free nursing care' NHS contribution of £3,900, which gives a net yearly cost £24,700.
Assuming Mrs Roberts would be eligible for the lower rate Attendance Allowance of £2,000 a year, this, coupled with an annual income of £11,000 means the net amount needed is £11,700. However, Mrs Roberts would like to allow £2,000 a year for personal spending money, which brings the total required to £13,700 or £1,145 a month.
Mrs Roberts has a reasonable pension, so paying monthly premiums for an income-generating plan may well suit her. The estimated monthly interest she would get from the sale of her house would be £445, leaving £700 a month to be covered by an insurance plan. A plan providing this level of cover would cost £65 a month.
If Mrs Roberts wanted to use the interest on the house value to add to her estate, rather than contributing towards the care costs, the single premium for the extra £445 a month would be just £7,500.
