Care funding case studies
These example case studies have been based on real life scenarios, and are designed to help illustrate how the Just Retirement Care Funding Plan can help.
Case study: Mr Smith
Mr Smith, a widower, is aged 79. He sold his house and moved into a care home several months ago, and has been paying for the care home fees out of the proceeds of his house sale.
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The care home fees are over £2,000 per month – Mr Smith is becoming worried that by paying these fees he will completely erode his children's inheritance.
Mr Smith is referred to a specialist care financial adviser by his care home. His adviser recommends a Just Retirement Care Funding Plan with a plan protection option that will pay the difference to his estate if he dies before the value of his payments has reached 50% of the purchase price.
Mr Smith decides to proceed with the plan. It helps to protect his children's inheritance and reduces his uncertainty over the amount of money he will spend on his care fees. Although the plan protection option increases his purchase price, he's happy to pay this because he then knows that the total benefits from his plan (either paid to his care home or returned to his estate) will not be less than a guaranteed amount.
- Peace of mind – Mr Smith no longer has to worry about spending his children's inheritance.
- Control – He is able to select a plan protection option that suits his needs.
- Value – He is satisfied that the plan will provide value for money no matter how long he needs his care home fees to be covered.
Case study: Mrs Brown
Mrs Brown, an 83 year old widow, has been experiencing declining health for some time now. As a result, she is finding it increasingly difficult to get around. After a lot of discussion with her daughter, she has decided that the time is right to sell her house and move into a care home.
The care home Mrs Brown has chosen is expensive and she is concerned that her money might run out. She is worried that if she can no longer afford the fees for her chosen care home, she may be forced to move to a different care home further away from her family.
Mrs Brown's daughter finds a specialist care financial adviser by searching on the internet. After an initial discussion with the adviser, they are both reassured to learn that she could take out a care funding plan, which will provide a guaranteed income that she can use towards her care fees for her entire lifetime.
Mrs Brown is able to reach an agreement with her chosen care home that the fees will only increase by a set amount each year, so by choosing a Just Retirement Care Funding Plan with an escalating level of income Mrs Brown has the peace of mind that her care fees will continue to be covered.
- Choice – Mrs Brown has the freedom to choose a care home that suits her and her family's needs.
- Certainty – She has the peace of mind that her care fees will continue to be covered for her entire lifetime and that she will be able to stay in her chosen care home.
- Reassurance – She is safe in the knowledge that the remaining money from the sale of her house can be passed to her daughter as an inheritance.