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financing dependency

Financing Increased Dependency

The cost of increased dependency

1a financial commitment

The loss of independence can be a trying ordeal for the elderly and their loved ones, emotionally, physically, as well as financially. Depending on individual circumstances and needs, costs can vary:

  • from €3,000 to €5,000 for adapting the home to the needs of the individual
  • from €15 to €30 per hour for a caregiver
  • from €40 to €150 per day for senior housing (excluding the cost of care)
  • Seniors who are no longer fully independent spend around €1,400 per month on assisted-living related expenses at home, compared to €2,000 per month if they are in retirement homes or healthcare facilities.

2Retirement Homes

The monthly fees for retirement homes also depend on their location:

  • from €1,500 to €1,800 in a rural area
  • from €2,000 to €2,700 in larger cities or the region around Paris
  • from €2,700 to €5,000 in Paris

Financing Increased Dependency

1Financial Assistance

  • Disability allowance: you can submit a request for disability allowance in order to cover any expenses if you are no longer fully independent or require regular care.
  • Pension fund assistance: this assistance is for those who are very independent with few medical problems (GIR group 5 or 6) and do not benefit from disability allowance (subject to age requirements). The amount varies depending on the individual's financial resources.
  • French department social welfare: these funds are available to those who are very independent with few medical problems (GIR group 5 or 6) and vary according to the individual's financial resources. They help to pay for a housekeeper or a social housing assistance in authorized facilities.

2Tax incentives(1)

  • Tax credits or deductions aimed at keeping the elderly in their homes: they allow for the financing of equipment installed in the principal residence and/or help at home. The amount is equal to either 25% of costs incurred before the 31st of December, limited to €5,000 for an individual and €10,000 for a couple(2) or 50% of amounts paid, limited to €12,000 per year plus an additional €1,500 per member of the household older than 65, up to a limit of €15,000 (with the limit raised to €18,000 for the first year and to €20,000 for a person with a disability).
  • Exemption for employer contributions when employing a caregiver: this was created especially for adults who are at least 60 years of age and are no longer fully independent or those at least 70 years of age.
  • Reduction in taxes for accommodation expenses for those who are no longer fully independent:(1) this is reserved for elderly persons who are no longer fully independent, who live in retirement homes or long-term healthcare facilities. The reduction is up to 25% of amounts paid and limited to €10,000 per person housed.

our solutions

BNP PARIBAS Multi-Investment Life Insurance

When the time comes, you can use the savings invested in a life insurance policy(3) to pay for expenses related to loss of independence:

  • either by partially or fully surrendering your policy for capital
  • or by requesting that your capital be converted into a life annuity

A simple life annuity

This provides you with additional income for life, with the amount linked to the savings invested in the policy.

Life annuity with optional loss of independence coverage

This annuity allows planning for any loss of independence with a total amount of up to the double of the annuity amount initially received (4), at the time loss of independence is observed.

Find out more

Independence Loan

Designed to help you meet changes related to loss of independence, BNP PARIBAS offers an INDEPENDENCE loan for a minimum of €760 to a maximum of €5,000, repayable over a period of 12 to 48 months at a fixed borrowing rate of 2.86% (nominal rate excluding insurance).

Offer valid for an amount of €5,000 over 48 months.

Fixed Annual Percentage Rate (APR)(5): 2.90%
Amount per payment due (excluding optional insurance): €110.36
Total amount due (excluding optional insurance): €5,297.28
Please note that a loan is a legal commitment and must be repaid. Remember to verify your ability to repay before signing up.

For example: For a loan of €5,000 and a term of 48 months, you would make 48 payments of €110.36 (excluding optional insurance). No application fee. Fixed borrowing rate: 2.86% per year. Fixed APR: 2.90%. Total amount owed by the borrower (excluding optional insurance): €5,297.28 Interest: €297.28.
If you sign up for optional insurance(6) (Accidental Death, Complete and Irreversible Loss of Independence, Total and Permanent Disability, Total Temporary Incapacity to Work): Insurance Annual Percentage Rate (APR): 1.39%; the total amount owed by the borrower for insurance over the total term of the loan: €144.00, the monthly insurance premium: €3.00 added to the loan installment payments.

(1) Conditions apply. Tax conditions in effect as of 2014-10-01.
(2) Limits may be raised per additional dependent person.
(3) Subject to the agreement of the beneficiary.
(4) Under the conditions stipulated in the policy, based on the following assumptions: Annuity revaluation rate: 1%; Technical rate: 0%; Rate of reversion: 100% - the example that appears above only has an indicative value.
(5) Annual Percentage Rate (APR) in effect as of 2015-03-16, excluding optional insurance, subject to application approval by BNP Paribas. You have a legal withdrawal period of up to 14 calendar days from the date you accepted the loan agreement.
(6) Insurance policy offered by Cardif Assurance Vie (life insurance) and Cardif Assurance Risques Divers (casualty insurance).

BNP Paribas, a limited company with a capital of €2,492,372,484 – Headquarters: 16 boulevard des italiens, 75009 Paris – Registered with the Paris RSC (Trade and Companies Registry) as No. 662 042 449 – EU VAT identification No. FR 76662042449 – Orias No. 07 022 735.
Cardif - Assurances Risques Divers, a business regulated by the French Insurance Code, a limited company with a capital of €16,875,840 – registered with the Paris RCS (Trade and Companies Registry) as No. 308 896 547 – Headquarters: 1 boulevard Haussmann, TSA 93000 – 75318 Paris Cedex 09 – Offices: 8 rue du Port, 92728 Nanterre Cedex.
Cardif - Assurance vie, a business regulated by the French Insurance Code, a limited company with a capital of €717,559,216 – registered with the Paris RCS (Trade and Companies Registry) as No. 732 028 154 – EU VAT Identification No. FR 12732028154 – Headquarters: 1 bd Haussmann, 75318 Paris – Offices: 8 rue du Port, 92728 Nanterre Cedex.

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