One of the major benefits of a reverse mortgage is that it can be used to cover the costs associated with long-term care. Over the next few decades, the number of older adults in the United States is projected to double and triple. For this reason, long-term care is projected to become a major expense. For many, it is already a burden.

How Can A Reverse Mortgage Pay for the cost of Long-Term Care?
Most seniors want to age in place, stay living in their home. Yet long-term care is one of the largest, unexpected expenses encountered by older adults.  Often, coinsurance associated with a health insurance policy, combined with the lifetime caps on many policies, can shift significant medical costs to the individual. This leaves many individuals looking for another source of cash flow. Many are on a fixed income and there are not a lot of options.
This is where a reverse mortgage might be an appropriate option. If a home is free and clear, a reverse mortgage might provide seniors with a much-needed cash infusion to cover the costs associated with long-term care. If there is a mortgage on the house it must be paid off with the reverse mortgage ( a refinance) before additional funds are available. A small payoff will result in greater cash flow to the borrower with a reverse mortgage.

Taking advantage of a Reverse Mortgage.
Often the ability to have a reverse mortgage allows for the creation of a Line of Credit to access as needed, for medical or other reasons.   To learn more about reverse mortgages, contact your local certified Reverse Mortgage Professional (CRMP) for guidance and expertise.

Can A Reverse Mortgage Impact Your Social Security or Medicare Benefits?
One of the most common worries as people age is the idea of outliving their money.  Many reach their retirement years and have built up significant untapped equity in their home.
Therefore, many think about drawing on the equity in their home as a source of cash flow and a  reverse mortgage might be the best option.

Impact on Social Security and Medicare
A borrower will always want to discuss these matters with a federal benefits administrator. A HECM reverse mortgage can potentially adversely affect a homeowner’s government benefits if: the benefit is affected by means-testing, and if the amount drawn from the reverse mortgage on a monthly basis exceeds the benefits limit.  if for example Mr. Jones draws $25,000 and places the funds in his bank account, he might disqualify himself from a benefit program.

Basic Social Security and Medicare are not means-tested therefore reverse mortgage proceeds generally do not affect Social Security and Medicare. Supplemental  Social Security and Medicaid have income and asset requirements. It is always best practice to consult with a benefits administrator or advisor to protect their financial plan.                                                                                                To learn more about reverse mortgages, contact your local certified Reverse Mortgage Professional (CRMP) for guidance and expertise.