It had to come. Challenger is the first to produce a financial product that provides a monthly cash stream to pay for residential aged care, designed to overcome the challenge of selling the family home.

This is what they say:

Challenger CarePlus (CarePlus) is designed for people who have been assessed as being eligible to receive Government-subsidised aged care services (including both residential and home care).

You can purchase a CarePlus if you are over 18 years of age and:

• have Aged Care Assessment Team (ACAT) approval that specifies you as being eligible to receive Government-subsidised aged care services (including home care), or
• live in an approved residential care facility.
• CarePlus provides regular payments for life, regardless of how long you live or how investment markets perform, whilst giving you the option to leave a bequest to your family when you pass away.

CarePlus offers a number of options that you can tailor to meet your needs. You may:

• choose how often you receive your regular payments (monthly, quarterly, half-yearly or yearly)
• choose your level of life insurance cover
• choose who receives the lump sum benefit payable upon death