Five Factors to Check before Subscribing for a Care Fee Annuity Programme

Are you wondering to know about care fee annuity? Well, if yes then you are in the right place. Care fee annuity is a special type of annuity funds that are provided by insurers as a monthly care fee income. A one-time premium sum needs to be insured with the service provider and then for the rest of your life your medical expenses are capped. This is a non-taxable income. Care fee annuity gives the elders an upper hand over their lives as they need not be dependent on their children or anybody for their health care.

When elderly people opt for such policies, they use all their savings to pay the premium amount. If the insurance organization rejects their plea of care home annuity or withholds the money, the elderly people lose money as well as health. Hence, first and foremost you should check the credibility of the insurance company. Moreover, when one narrows down their care fee annuity plans, they must consult with proper care fee specialists or advisories who will be able to call black as black and white as white. The below mentioned five things should be strictly checked before subscribing for a care fee annuity programme.

• Who are eligible for the annuity?

Most of the annuity plans pays the prime insurer. In case if the insurer is terminally ill, the payout will be transferred to the name of the care taker. This part of nomination of funds should be clearly drafted in the annuity policy.

• What is the initial premium amount?

The one time payout premium cost is another important parameter. It should neither be too high that it swallows the entire savings nor be too low that one gets a meagre amount as the annuity monthly income.

• What is the coverage percentage?

Many elders live under the impression that as they have insured for care fee annuity, they can get complete medical aid. This is untrue. Based on the coverage percentage, these policies roll out fixed sum monthly.

• Are they tax-free?

Generally care fee annuities are tax free income. If there is any special clause added in the policy related to taxation, the insured must have prior information related to the same.

• What are the payout options?

There are different types of payment options associated with care fee annuities like escalation and capital protection. One must choose the correct mode of payment so that it helps them the most.

Care fee annuity is a brilliant concept where the elders secure their savings to help them in their most vulnerable days. If one can stay away from malicious insurers their life is secured until death. So, it is wise to consult with the care fee advice specialists before subscribing for any plan.