Innovative Uses of a Reverse Mortgage
Reverse Mortgages Enhance Estate and Tax Planning Components of Retirement Planning and Reduce Financial Risks of Medical Crises
Generally speaking, a reverse mortgage can be used in almost any way you choose. It is up to you to determine the best way to use money.
However, reverse mortgages offer particular financial advantages when used by seniors as an estate planning tool in a retirement plan.
Consider the following uses of a reverse mortgage:
Funding for Healthcare or Medical Treatment
Long term care is a big risk to most seniors' financial planning for retirement.
While 42 percent of people over the age of 65 require or will require long term health care, neither Medicare nor supplemental medical insurance cover the costs of these services - either in your own home or in a nursing facility. Moreover, most Seniors don't have long term care insurance.
Many financial retirement planners recommend that their clients secure a reverse mortgage to help fund a long term care insurance cost or other medical costs.
Using a reverse mortgage to pay for medical costs and/or insurance can be an important part of asset protection planning for the benefit of you and your heirs.
Other Asset Protection Strategies – Leave Something to Your Heirs
You might consider using the proceeds from a reverse mortgage to fund a life insurance product. This is particularly useful if you have built up significant home equity.
Funding a life insurance policy with a reverse mortgage gives you control over your estate and assures the legacy you leave retains its value by:
If you have equity in your home, you may want to explore how a reverse mortgage could be an important component of your estate plan. (To discuss estate planning and other benefits of a reverse mortgage, click here to be contacted by a prequalified reverse mortgage lender.)
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