Long Term Care Insurance and Reverse Loans

Financial Advisor Magazine published an article recently about the issue of how to manage the costs of aging when people have not purchased a Long Term Care Insurance policy.

It’s a looming crisis for many families as they are unprepared to help their senior parents with any physical or medical problems that will naturally occur as they/we get older.   Unfortunately , most people haven’t considered buying the insurance   ( And yes, it is expensive, especially if you buy it when you are much older) and now may find that they can’t qualify for it due to health issues and it’s simply financially out of reach.

Here is the remainder of a summary of the article from Financial Advisors Magazine.

Financial Advisors: Reverse Mortgages Provide Alternative to LTC Insurance
Posted By Cassandra Dowell On July 7, 2015 @ 3:35 pm In News,Reverse Mortgage

“A unique feature of the HECM reverse mortgage many are surprised to learn about is its growing credit line,” FA Magazine says. “As the borrower ages, the reverse mortgage line of credit continues to grow, providing access to significantly more funds. This makes reverse mortgage a superior funding tool versus a traditional HELOC, which doesn’t grow over time and requires monthly payments.”

The article encourages advisors to check with a reputable reverse mortgage lender to see what resources they have available to help determine whether a reverse mortgage is a worthwhile option for their senior clients.

“Since senior care needs often come in the form of an unexpected broken hip, heart attack, etc., the best strategy for millions of seniors may be to set up the standby line of credit in advance, so funding is ready when needed,” FA Magazine says. “In the meantime, the credit line grows, steadily increasing available funds over time.”

Using the money from a Reverse loan can take away the worry and stress of paying for professional services that otherwise they could not afford.   And as a reminder, the property remains in the borrowers name, the Bank doesn’t “take the property back at the end of the loan” and costs have come down on loan program.

It’s an ideal solution to pay for the costs associated with aging.

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