long term care insurance

Financial Advisor Magazine

Financial Advisor Magazine recently published an article discussing the serious need for Long Term Care Insurance for our aging population.    However, many people have missed the window of opportunity to purchase it and now due to possible health problems, they are not necessarily a qualified candidate for the insurance.

And many people don’t know that Medicare will not pay for any long term care events.    And often it falls to a family member to become the caregiver of their parent, which is very stressful for the entire family, as it disrupts their own lives and frequently they have to use their own money to pay for any expenses for their parent.

Personally, I purchased mine quite some time ago and it certainly gives me the peace of mind knowing that I have it in the event, some time in the future I become unable to care for myself or if I am disabled.    Of course, that’s not my plan as I age, but it is a very serious possibility for many people.

One solution that was presented, was to use funds from a Reverse loan to either self-insure yourself or if you do qualify for the insurance but can’t afford it, use money from a Reverse loan to pay the premiums.

Here is a shorter version of the article that I will place into, two posts.

Financial Advisors: Reverse Mortgages Provide Alternative to LTC Insurance
Posted ByCassandra DowellOn July 7, 2015 @ 3:35 pm In News,Reverse Mortgage

“As America’s aging population continues to grow, the need for advanced senior care planning becomes increasingly dire.

Yet long-term care insurance isn’t always an option for todays aging Americans, says Financial Advisor Magazine in a recent article. In those instances, advisors should consider recommending a reverse mortgage, taken as a line of credit.

“Clients over age 60 may have missed the window to purchase affordable long-term care insurance,” notes FA magazine, adding that each year after age 60 premiums become “extraordinarily high” and it becomes less likely for the applicant to medically qualify.

When long-term care insurance isn’t an option, advisors should consider recommending a standby Home Equity Conversion Mortgage (HECM) line of credit, FA Magazine suggests, explaining that borrowers are not required to pay monthly loan payments as long as they live in the home as their primary residence and continue to pay taxes, insurance and home maintenance.”

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Reverse loans, Regulations & Counseling

In the ten years that I have been employed as a Reverse Mortgage specialist, I have seen many changes in the the program,  resulting in more loan options with lower fees and more government regulation which is for the senior’s benefit.

Peter Bell is the President of the National Reverse Mortgage Lenders Association and recently had an article published in the magazine, “Life After 50” covering the history and initiation of Reverse loans and the changes to the government program over the last several years. The article is too long to post here, but I will share some of his comments.

“From conception, HECM’s have featured groundbreaking consumer protections including mandatory pre-application, independent counseling. They are the only financial product that mandates borrowers have independent counseling before they can apply for a loan. Counseling gives prospective borrowers the opportunity to fully understand and consider the terms and implications of a reverse mortgage loan with an independent professional before a borrower applies for a loan.”

“Reverse mortgages are a well-conceived tool in the retirement toolbox that have benefited from product innovation and evolution of consumer protections. Today’s borrowers have more choice, cheaper loans and more protection.”

Please call me with any questions that you may have about using reverse loans for LTC and retirement benefits. There are many low-cost options to chose from and the mortgage rates are at historical “lows”.

With the loss of many social programs that seniors have come to rely upon, funds from a Reverse loan can keep them in their home and assist them in paying for long-term-care and other expenses.

 

 

 

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