Where the words 'we',
'us' or 'our' are used in this column they refer to Norwich Union
Life & Pensions Limited. The words 'you' or 'your' refer to you, the
planholder.
The Immediate Care plan is an annuity which provides regular payments
throughout the annuitant's lifetime. These payments can be used to pay for
care services either in the annuitant's own home, a residential home or a
nursing home.
There are two versions of the plan available:
i. with, or
ii. without a care services package.
Any remaining annuity not paid to a care provider will be paid to you.
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How to take out an Immediate Care plan
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You or your financial adviser will need to complete an 'illustration
request form', which contains questions about the annuitants health.
We will then provide an initial illustration which will provide
information on what you might get back from the Immediate Care plan.
You can choose to have the annuity paid for at least a guaranteed
period of between six months and five years inclusive.
However, the guaranteed period must be an exact number of annuity
payments. This means that for monthly annuities the guaranteed period can
be any number of months, but for quarterly annuities it must be an exact
number of quarter years. For half-yearly annuities it must be an exact
number of half years and for yearly annuities it must be an exact number
of years.
If the annuitant dies within the guaranteed period then you or your legal
representatives can choose to have:
i. the annuity payments continue for the remainder of the guaranteed
period, or
ii. a lump sum equal to the total to the remaining guaranteed payments
reduced to allow for them being paid earlier than expected.
You can choose to have a percentage of 100%, 50% or 25% of the amount
used by the annuity capital protected.
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Increases in annuity payments
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You can choose to have the annuity payments increase at the end of
each plan year by:
i. a fixed percentage between 3% & 8.5% inclusive in 0.1% steps or,
ii. in line with the growth of the Retail Prices Index (RPI), or
iii. in line with the growth of RPI + 2%
The level of RPI used to calculate the increase each year, will be the
latest published figure before the plan anniversary at which the increase
is due to take place. It will also be the latest published figure before
the previous plan anniversary.
Please refer to your financial adviser for further details of how this
works.
Annuity payments will differ depending on whether you choose our care
services package or arrange your own care provision.
Care services annuity payments
If you choose our care services package there are two methods of
payment available. This will depend on whether you choose to enter a
residential/nursing home or choose our Home care/Personal care in the home
service packages.
If you choose to enter a residential/nursing home:
We can split the annuity between up to four destinations, in addition
to paying any remainder to you. We will only vary the amount of payment to
the service providers if you tell us to.
The minimum amount of regular payment to each destination, before the
deduction of any tax is £20 each month, £240 each year.
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Any remaining amount payable to you will not be subject to this minimum.
If the amount of annuity after the deduction of tax increases or
decreases, the amount paid to you will change. We will not change the
amount paid to the service providers.
If you choose our Home care/Personal care in the home services package:
We can pay the annuity to a single bank account, which you will advise
us of.
As it is likely the amount of care services required will change
frequently, we will help to arrange for the care service provider to use a
variable direct debit on the bank account you have advised us of to pay
for the care services direct.
If requested we can pay the annuity payments direct to one of the care
service providers bank accounts.
If the annuity increases or decreases, the new amount will be paid to this
bank account unless you advise us of a different payment instruction.
Non Care Services annuity payments
If you choose not to take our care services package, the annuity
payment must be made to a single bank account. You must specify the bank
account to which the annuity payment is to be made.
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The amount used to buy the annuity
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The plan can only be bought by a single premium payable by cheque or
through share exchange.
No additional amounts can be paid to this plan.
Additional benefits may be bought by taking out a new plan, subject to our
minimum requirements and plan fee at that time.
The minimum single amount that may be used to buy an annuity is £5000.
All amounts must be paid in sterling.
For Channel Islands and Isle of Man contracts, the amounts must be paid
into our bank accounts on the islands.
If the annuity is a Purchased Life Annuity then the interest part of
the annuity, i.e. the interest content, will be taxed as your income.
A form will have to be completed to get tax relief on the part of the
annuity that is effectively a return of capital, i.e. the capital content.
Should you move abroad, normal overseas taxation will apply.
Payments must however be made to a bank or building society in the UK,
Channel Islands or Isle of Man.
Changes in taxation
If the rate or basis of income tax changes and a fixed amount of the
annuity, after any deduction for tax is being used to pay for services,
then any remainder being paid to you is likely to change.
If this means that the annuity payments, after the deduction of tax,
become insufficient to pay for care services the annuitant is receiving,
then you or the annuitant will need to pay the shortfall.
If the rate or basis of Value Added Tax (VAT) changes, the cost of any
care services is likely to change.
This could mean you or the annuitant will have to make up any shortfall
between the annuity payment and the cost of services.
The Care bureau will need to be informed in writing, or by telephone
of your death, or that of the annuitant.
When we are advised of the death we may require evidence of the death to
be sent to us.
If applicable, you or your legal representatives will need to tell us who
we should pay any lump sum or guaranteed annuity payments to.
We will not be able to make any annuity payments from the date we know
about your death to the date when your legal representatives are able to
deal with your estate. Your legal representatives will then need to tell
us who we should make the annuity payments to.
This may disrupt the provision of care services to the
annuitant.
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