Funding for care later on in life, whether it be for yourself or for a loved one, is something that needs to be considered in advance and planned out. Whether you are considering residential Care Home or Home Care (also known as Care at Home), it’s important to understand that care costs can be substantial and thus – planned in advance.
Care costs in the UK vary greatly depending on the type of care that is needed for an elderly person, and the environment they wish to be in. For example, a specialist, one-to-one care may require hiring a qualified carer, which could add to the cost of care. This may be more suited to Home Care, which is slightly more affordable than residential Care Homes depending on which location you are looking at in the UK.
Care home fees and home care costs
Planning how you will be paying for care gives you much-needed peace of mind, and can help in deciding which is the best type of care that fits your budget. There are many options you can explore to cover the cost of care and give you the reassurance that it is all being taken care of.
Taking out a deferred payment plan
A deferred payment plan is essentially a loan that is arranged with your local authority that is secured against your home at a fixed interest rate. Local authorities do have the choice to charge interest but they may choose not to do so. After death, the loan is set up to be repaid and the house is sold.
Sell your home
If you have chosen to opt for residential Care Home, selling the house could be an option to fund the Care Home fees. This is a good option given that no-one is living in the property and you or your loved one will no longer be needing it.
Rent you home out
This is a good option again if you or your loved one are looking to cover Care Home fees but aren’t keen to let go of your own property just yet. You may want to leave it for your family or to keep the property on the market until you feel it would sell at its full value.
Use income and savings
You may have saved enough over the years, and have a stream of income coming in to fund for your care. This allows for flexibility of choice when it comes to picking which type of care you would like. Whether it be cover Care Home fees, or paying for Home Care, having the money readily available makes both very feasible.
Pick the most affordable option for you
If finances are a concern when thinking about future care, Home Care and bringing in a live-in carer to stay with you at your home is a very affordable option. You don’t have to worry about meeting the Care Home fees and there’s the added benefit of being in a familiar and comfortable environment.
All of the above payment options have their advantages and disadvantages, depending on what you feel most comfortable with and how flexible you are with your desired care plan. A trained financial adviser who specialises in care funding can give you the best appropriate advice to suit your own circumstances. You can also get in touch with us to learn about the costs of Home Care and live-in care.