Key Features of the Liverpool Victoria Immediate Needs Annuity

Its aims

• To provide immediate funding for professional nursing care, for as long as care is required.
• To increase payments each year, if you choose.

Your commitment

• You pay us a single lump sum at the beginning. The minimum purchase price is £10,000. There is no maximum.
• You agree to tell us of a change of care provider.
• You agree to tell us, whether we ask you or not, if at any time professional nursing care is not required either temporarily or permanently.
• We will need evidence of health from your own general practitioner and any specialist consultants, but a medical examination is not necessary.

Risk factors

• When you receive your plan documents you will have 30 days in which you can change your mind and cancel the plan. If you cancel it at any time after that, it will have no cash-in value.
• If you no longer need privately funded care, the income can be paid directly to you. However, any income paid in these circumstances may become subject to a tax charge.
• Your entitlement to state benefits could be affected.
• Even if you choose to have your payments increase each year, the cost of care could go up by more due to inflation. If this happens, your plan may not cover increases in the cost of care. If this happens you will need to provide the difference yourself.

Questions & answers

What is the Immediate Care Fees Plan?

It is a plan which, in return for a single lump sum, guarantees to make regular payments for the time you require professional nursing care. The payments start immediately and will continue for the rest of your life.

Can I apply for this plan?

Anyone over the age of 50 and living in England, Scotland, Wales or Northern Ireland, is eligible for the plan provided their health is sufficiently impaired that professional nursing care is required.

Your chosen care provider must be regulated by, and registered with, the National Care Standards Commission (or other appropriate body). They will be required to sign our Contract for the Payment of Care Provider Fees before payments can start. Payments cannot be made directly to you, your family or friends.

How flexible is it?

You should regularly look at your circumstances with a view to ensuring your needs continue to be met. You should always seek advice in the event of any change affecting your needs.

You can change care providers if you wish, but we do ask for advance notice, if possible, to allow us time to make arrangements with your new care provider. The new care provider must sign a Contract for the Payment of Care Provider Fees.

If you no longer require privately funded nursing care, for example because you later qualify for state support, or because you do not require nursing care altogether, then payments can be made directly to you. However, any income paid in these circumstances may become subject to a tax charge, based on your personal circumstances.

Once your plan starts you cannot change the payment basis, cash it in, or transfer the plan at any time.

What happens if the cost of care increases?

If you are concerned about care costs increasing, you could, when you buy your plan, choose to have payments that increase each year. LV= offers you a range of options to choose from. Even if you decide to have payments that increase each year, care fees may increase to a level above your plan payments. If this happens you can usually take out an additional plan to cover the difference. Otherwise, you will be responsible for paying the difference yourself.

What will I receive from the plan?

We use the sum you give us when you buy your plan to provide regular payments directly to your care provider’s bank account.

Because the plan is only available to individuals in poor health we are able to offer much better terms than for a standard annuity.

How much will the plan cost?

The amount you have to pay will depend on your age, state of health and the amount you need to provide care.

The quotation shows either the regular payments provided by a specific sum of money, or, the lump sum you will need to pay to provide a particular level of payments. The quoted benefits are guaranteed for one month from the date of your first quotation.

Once we have received the capital sum needed and your plan has started, the regular payments shown in your final quotation are guaranteed for the rest of your life.

When will the plan pay out?

When your plan starts, we will start making regular payments to your care provider, on a date agreed with them.

When will payments stop?

The plan will make payments for the rest of your life.

Payments will usually be made directly to your chosen care provider. If you no longer require privately funded care for a period of six months or less, for example if you have a holiday, or a stay in hospital, payments will continue to your care provider to ensure care resumes when you return.

If you no longer require privately funded nursing care on a permanent basis, you may choose to receive income payments yourself. However, any income payable in these circumstances may become subject to a tax charge.

How will benefits be paid?

We will make payments directly to your care provider. We will make payments monthly or four-weekly depending on your care provider’s requirements.

What happens to my benefits when I die?

The plan comes to an end and we stop making payments.

What are the charges?

There are no charges other than the lump sum. However, depending on individual circumstances, solicitors and other professional advisers may charge you for their advice and work.

Can the plan be taken out for someone else?

An Immediate Care Fees Plan can be bought for the benefit of another person in one of two ways:

• If you are responsible for the affairs of someone else by holding a Power of Attorney, you can buy a plan for their benefit.
• If you have a relative or friend who requires immediate care but does not have enough money available at the time to buy their own plan, you can buy a plan for their benefit. This is known as a ‘life of another’ plan.

Can two people benefit from a plan?

No, we do not issue plans that cover two people or more. If a couple both require funding for immediate care provision, we can issue two individual Immediate Care Fees Plans.

What about tax?

Whilst payments are made directly to a registered care provider, we will not make any deduction in respect of tax. Also, you will not be liable to pay any tax in relation to these payments.

If you no longer require care, and if payments are made to yourself or another party, the income payments may become subject to an income tax charge. If this happens you should contact your adviser for more information.