Combined DAP/RAD

IF we do a combined RAD & DAP does that reduce the lifetime payment amount of approx 62K ($21,000 per year) that would be paid if no RAD was paid. ie a RAD of 349,000 with a deposit of 200000 was made which reduced the daily fee to approx $23 ($8500 per year). Would the lifetime payment still be 62K or would that reduce commensurately.

Hi bergy,Rob Craven our expert adviser from Affinity Aged Care Financial Services has responded to your question as follows:If no lump sum was paid, with a RAD of $349,000, the DAP would be $55.08 per day and this amount would need to be paid for the duration of the residents stay in care. This fee is not capped.If a lump sum of $200,000 was subsequently paid, the DAP would reduce to $23.51 per day.The indexed lifetime cap (currently $62,498.66) only applies to the means tested care fee.Neither the basic daily care fees nor the daily accommodation payments are included in the lifetime