A health cash plan is a low cost health plan that pays cash lump sum towards the cost of wide range of treatments such as dental, opticians, hospital stay and alternative therapies.

A health cash plan is different from health insurance or private medical insurance because it is designed to cover everyday healthcare needs, whereas health insurance covers conditions which may or may not arise.

Advantages

The main advantage of a Health Cash Plan

for a diabetic is that unlike health insurance, the cash plan does not take into account existing medical conditions such as diabetes and there is no need for a medical screening.

The traditional health insurance for a diabetic can cost the earth and although the cash plan is not a replacement, it is a good alternative to cover some of the basic healthcare costs.

Other advantages include:

• Children are usually added free of charge
• Premiums are not based on age, gender or current state of health
• Cash back on dental check-ups, investigations, X-rays and hygienist visits
• Includes cover for optical costs like sight tests, prescription glasses and contact lenses
• Up to 4 children (under the age of 18 living at home) get the same level of cover as you

What does it cover?

This will vary from provider to provider and the level of cover you choose but generally a health cash plan will cover:

• Cost of dental treatments (including check-ups and treatments, fillings, crowns, bridges and hygienist fees)
• Optical costs (including sight test fees, glasses, contact lenses, repairs, swimming goggles and sunglasses)
• Physiotherapy
• Osteopathy
• Chiropractic
• Acupuncture
• Homeopathy
• Chiropody
• Podiatry
• New child benefit (single payment paid on birth or adoption of a child)
• Hospital benefits

How much does it cost?

This is dependent on the level of cover you choose and premiums can vary. It is important that you read the policy carefully to make sure it meets your needs.

As you get older taking out life insurance generally gets more expensive, particularly if you have poor health or a condition such as diabetes.

However, those aged between 50 to 75 years of age (up to 85 years of age with some insurance companies) can take out a 50’s plan which gives basic life cover for a few pounds a week.

The reason the premium are so cheap for the over 50’s is because, unlike traditional life insurance policies the over 50’s plan doesn’t require a medical examination or health questionnaire.

You do not have to make any statements about the current state of your health, which makes it very attractive if you are a diabetic.

How does it work?

You pay a monthly premium for a guaranteed cash lump sum payout in the event of your death.

The amount of payout depends on the level of cover you choose and it’s important to remember that inflation will reduce what your cash will buy in the future, so you need to factor that in when choosing the level of cover.

In most cases you stop paying the premium when you reach 90 (85 for some insurers) but you will continue to be covered by the policy for the remainder of your life.

Most insurance companies will not pay out if you die within the first 2 years unless it was an accident but some insurance companies will pay out 100% of what you have paid in plus additional 50%, so it’s always worth checking the policy.

Advantages

The main advantage of the over 50’s plan is to get inexpensive life cover without having to make any statements about your current state of health.

One of the most trusted Over 50s Life Cover providers is Engage Mutual who offer other advantages including:

• a
  
  
  guaranteed fixed cash sum and has no medical or health questions
• 5% discount when you buy over 50s
  
  life insurance
  online
• free welcome gift or a plan with cashback
• £250 contribution towards your funeral through The Co-operative Funeralcare if you choose to include a funeral funding option

Disadvantages

If you have the policy for 30 or 40 years you could end up paying out more in premiums than the actual payout.

It is also worth remembering that this is not a
savings
plan, so should you decide to cancel the policy before you are 90 (85 for some insurers) then you won’t receive any money.

Planning for the costs of long term care in a care home can be quite a stressful experience.

Our guide helps to give the basic information to help understand what care funding is and where a care fund may be useful.

What is care funding?

Care funds are set up in order to provide you with finance to help you pay for temporary or long term care in a care home.

You can either set up care funding prior to the need for long term care, this is known as deferred care funding, or you may need long term in the present, in which you’d need immediate care funding.

How much does long term care cost?

The cost of being looked after in a care home will typically be upwards of £20,000 a year.

How much does care funding cost?

A care funding plan is expensive and can typically cost around £80,000 to £100,000. However, as the price of a care home is also expensive, care funding may well be worthwhile.

Local authority care home funding

Your local authority will help fund your stay in a care home if you meet certain requirements. One of the requirements for receiving financial help is if you have less than £23,250 of capital (the value of your savings and assets).

Your eligibility for financial support will be individually assessed (means tested).

In Scotland, financial help is given if your capital is less than £22,750 and in Wales if your capital is less than £22,000.

The value of your home will be included as assets unless certain conditions apply, such as if your stay in the care home is temporary or your former home is occupied by a partner or relative who is particularly dependent on the home (eg over 60 or incapacitated).

The amount of financial help that councils will contribute will vary from area to area.

How can long term care be funded?

To provide the money necessary to set up care funding some of the following options may be necessary:

• Use of savings
• Renting out your home
• Sale of your home
• Release equity from your home

Who provides care funding?

The two largest providers of care funding are Partnership and Friends Life.

What are the benefits of care funding?

Care funding is designed to help you pay for care for as long as you need it.

Payments to a care fund should be free of income tax.

Are there any disadvantages of care funding?

To pay for care plans, a large lump sum needs to be invested.

Should the worst happen and you die soon into your care the money invested in the care fund may not be able to be withdrawn by your relatives. Some care plans, however, may provide a return of money given certain terms apply.

A funeral plan allows you to arrange and pay for a funeral at today’s price to use in the future. This saves your loved ones from worry and confusion as to what you would want for your funeral.

It also takes care of the funeral costs, giving you a guaranteed peace of mind that your loved ones will not be burdened with huge funeral bills.

Funeral costs are rising fast. It is estimated that an average funeral costs 61% more than it did seven years ago, and according to a recent survey a funeral that costs £4000 today will cost £6000 by 2028.

Funeral Price Inflation vs RPI vs Savings

A 50+funeral plan helps you protect yourself, or someone else against these rising costs, giving a better advantage over savings or a life insurance policy for the same purpose.

As well as taking care of the financial aspects of the funeral, a 50+funeral plan will also give you the freedom to choose the detail of your funeral, including perhaps the most important choice – which funeral director will look after you and your family.

There are many companies that can arrange prepaid funeral plans. However, we have negotiated with a leading funeral plan company

Golden Charter

to provide the cheapest 50+funeral plans for people with diabetes.

Golden Charter are the UK’s largest independent funeral plan providers, and organise every detail of your funeral to your specifications. This provides:

• Consideration for loved ones
• A guarantee of no more to pay for your funeral director’s services
• Financial security, and proven value for money
• A local, independent funeral director to take care of your arrangements

To qualify you must be 50 years of age or over.

Golden Charter also offer flexible payment terms, so you can either choose to pay for your plan in full or take advantage of the 12 month instalment option or opt for the extended monthly payment option.

A will is a legal document that sets out who inherits your property and possessions, referred to as your estate after you die.

Making a will is no different for people with diabetes.

You can ensure that the people you care about are taken care of and the causes you feel strongly about are remebered.

There are no special arrangements for will writing for people with diabetes although as risks of conditions such as

heart disease
are generally higher for people with diabetes, having a will prepared earlier on in life may help make things easier on your family should the worst happen.

Why should I make a Will?

A will helps to ensure your property, equity and possessions are passed on to the people or organisations you’d like them to go to.

Making a will or reviewing your existing will can be a simple and inexpensive process. Make a

FREE, no-obligation will making

enquiry and speak to a specialist will advisor who can discuss your will requirements and circumstances.

Making a will helps to make for an easier process of distributing your wealth and belongings and can avoid distress or uncertainty to family members.

What happens if I don’t make a Will?

If you don’t make a will, your estate will be divided according to the laws of intestacy and it can become a complicated affair for your surviving family. The legal term used for dying without having made a will is having died ‘intestate’.

In the case that you have no surviving relatives, your estate would go to the Crown, in other words to the state coffers.

Can I write my own Will or does a solicitor have to?

You can write your own Will. There are certain conditions that need to be met for it to be legally valid. A number of Will writing guidance packs are available.

Formalities of a Will include that it must be a written document, it must be signed by the Testator (person in whose name the Will is made) and two witnesses must be present and for the signing of the Will by the testator and themselves sign the Will to confirm this.

Unless you have simple affairs, it is generally recommended to seek expert help.

Who is responsible for making the arrangements in the Will?

In your Will, you can state one or more people to be Executors of your Will. This could be a trusted member of your family or could be your solicitor.

If a Will has not been made then someone will need to act as Administrator.

Probate: the process of administering the Will

The process of carrying out the arrangements in the Will is termed probate. The Executors named in the Will (or Administrators if no Will is left) will need to apply for authority to administer the Will.

To apply, the Executors or Administrators will need to apply to the UK Probate Service to obtain a Grant of Representation.

Making a Will and funeral arrangements

It is a good idea to include details of how you’d like your funeral to be arranged within your Will. Putting the arrangements in your Will will help your family ensure your wishes are met. You may wish to stipulate in your will money to be set aside for your funeral.

It’s common to include details of whether you wish to be cremated or buried, where your body is laid to rest, which hymns/music you would like to be played at your funeral and any special arrangements you wish to specify.

Reducing inheritance tax through a Will

One of the key advantages of drawing up a Will is that you can plan how you want to divide up your estate in such a way to reduce the amount of inheritance tax you may otherwise be liable for.

Inheritance tax implications can sometimes be quite complicated and you may wish to seek financial advice to help you best distribute your wealth.

Giving a gift to charity

A popular choice is to bequest money to a charitable cause. There are a number of

diabetes charities
you may choose to give money to as a legacy.