How can Equity Release Fund Private Medical Care?
We spend our entire lives hoping that by the time we retire and grow old, we all have people looking after us or at least enough money to pay for healthcare.
Unfortunately, lots of people feel incredibly reluctant to move into a care home during the final years of their life. However, lots of people also do not have enough savings put away to pay for their care needs.
This is why a lot of people choose to use equity release plans as a way of gaining access to funds to pay for their care needs.
This is a great option for anyone aged over 55 years old, who own their own property worth over £70,000 and who do not mind leaving their loved ones a little less inheritance than they originally planned.
For those with little to no savings, using equity release to pay for your care needs is a great way of ensuring that you have access to enough money to ensure that you have a dignified end of life and care plan.
This is a much better and safer way of borrowing money, compared to taking out a loan or getting a credit card.
Equity release is able to contribute to your care costs in lots of different ways, including paying for any home improvements you might need to make your house work for you in your old age, paying for a care home or paying for any treatment or medication that you might need.
Unfortunately, whilst we are very lucky to benefit from the NHS, they are suffering from a complete lack of funding. As a result of this, waiting lists are long.
In fact, some people are left waiting months or even sometimes years for treatment that they need in their old age.
For many people, waiting this long simply is not a viable option. This is why a lot of people consider taking out an equity release plan to help to pay for private medical and healthcare to see them through.
If you would like more information, then you should talk to a member of the team at Equity Release Warehouse.
Our team are on hand to provide you with the best advice on how to use your money to pay for your healthcare costs or healthcare costs for a loved one.
Please call our 24-Hour Helpline: 0330 058 1579
Using equity release to pay for private healthcare
As discussed above, there are lots of different reasons why people might consider taking out an equity release scheme to help to pay for private healthcare costs.
By opting for private healthcare, you will receive treatment much quicker than you would if you were to wait for treatment on the NHS. You will also have more insight and control over your doctors and your treatment options. However, paying for private healthcare can be incredibly expensive.
In fact, paying for private healthcare can set you back thousands of pounds. For example, paying for something as simple as a knee or hip replacement could cost you upwards of £10,000 – £15,000, depending on what type of private healthcare you opt for.
For most people, simply dipping into their savings to cover these costs simply is not a viable option. This is why accessing the equity in your home to pay for healthcare costs has become an incredibly popular and tried and tested way of paying for your private healthcare treatment.
Below are just some of the ways that people spend their equity release funds on paying for their healthcare needs.
Using your equity release funds to pay for a care home
Lots of people choose to spend their equity release funds on paying for a care home. This is a great option for anyone who has an ageing parent, loved one or family member who desperately needs to move into a care home but simply cannot afford it.
However, it is incredibly important to remember that if you take out an equity release loan to pay for someone else’s healthcare costs, you have to remain living in your home until you, yourself, passes away or moves into a care home.
If you do want to pay for a loved ones care home, you will have to contact your local council and have an assessment, such as a financial means test, to make sure that you can afford to do so.
Please call our 24-Hour Helpline: 0330 058 1579
Using equity release funds to pay for home improvements
As discussed above, lots of people choose to release equity release from their home to make some home improvements around their house or a loved ones home.
These home improvements could include making the home safe for your loved one as they age, such as adding in hand rails, or slopes / ramps for a wheelchair.
However, it is important to understand how this might affect the future value of your home. For some, these home improvements would be beneficial and would add value to a property, for some it might decrease the value of the property in their eyes.
Using equity release funds to pay for private medical care
Some people choose to release equity from their home because they want to pay for medical costs. This might include things such as a private hip replacement, other surgeries or treatment plans. This is a great option for those who aren’t able to wait for their treatment on the NHS.
Why are more people relying on private healthcare than ever?
As discussed above, the NHS is suffering from a lack of funding which means that waiting lists are long.
In fact, the latest statistics from the BMA state that there are currently an estimated 7.20 million people living across the UK who are currently waiting for healthcare treatment on the NHS.
This is a record high, with 3.1 million of these individuals having to wait at least 18 weeks or more to receive any form of treatment [1].
Unfortunately, this means that a lot of people who desperately need NHS funded treatment are unable to wait this long, and are forced into either having to put up with the pain, or having to find ways of funding their healthcare treatment privately.
Please call our 24-Hour Helpline: 0330 058 1579
What are the risks of using equity release to pay for care needs?
Unfortunately, there are a few risks associated with releasing equity to pay for care needs, especially if you are paying for someone else’s care costs.
For example, by opting for equity release you will be leaving your loved ones with less inheritance than they might have expected.
This is why it is incredibly important to discuss your plans to release equity from your home with your family, next of kin and loved ones before doing so. In addition to this, by using your equity to pay for a care home, you might no longer be able to qualify for any council healthcare support [2].
How much does it cost to release equity from my home?
It is incredibly important to understand that releasing equity from your home does involve some upfront costs, even if you are using your money to pay for your healthcare.
For example, this will include legal costs, a valuation fee, insurance, arrangement and application fees including a completion fee.
These costs will need to be paid upfront, usually before you receive your equity release funds. These could cost a few thousand pounds, so it is important to ensure that you have these funds available.
It is also recommended that you remain open and honest with your equity release advisor about how you want to spend your funds. They will make sure that you are protecting your funds, and will be following the advice laid out by the equity release council.
Please call our 24-Hour Helpline: 0330 058 1579
The Equity Release Council
The Equity Release Council standardises the industry, to ensure that all lenders and advisers are offering fair and transparent offers to their clients. They also ensure that all lenders offer a no negative equity guarantee. This means that even if your house reduces in value to less then the loan amount, your family will never be liable to pay the difference.
The Equity Release Council also ensures that all individuals who are considering equity release have to consult with an equity release advisor, to see them through the application process. You must also instruct a solicitor to work on your behalf, who will also be able to guide you on what to do and when.
Should I disclose any health conditions when applying for equity release?
It is important to understand that if you plan on spending your equity release funds on private healthcare needs, then you will need to inform your equity release advisor about this, as well as any diagnosed health issues that you might be suffering from.
This is incredibly important, as not declaring any health conditions could be in breach of your application and equity release loan.
Talk to Equity Release Warehouse
If you want to use your equity release money on paying for care costs, whether they are yours or a loved ones, then you should talk to a member of the team at Equity Release Warehouse.
Our team of specialists are on hand to advise you on what type of loan you should opt for, and how to go about applying for it.
Our team will never put you on the spot or try to convince you to release equity from your home unless you desperately want to. You can call our team for free on 0330 058 1579 or by visiting our website on www.equityreleasewarehouse.com.
Please call our 24-Hour Helpline: 0330 058 1579
References
[2] https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs65_equity_release_fcs.pdf
