Lets face it, there is no guarantee that you will need long-term care. Because of this, it’s important to think of the need for long-term care as a risk, versus a certainty. The majority of experts agree that with this in mind, it’s better to insure against the need, versus save for the need.
Reverse mortgages are typically not enough money to guarantee that both people in a couple could have the long-term care they need if both become impaired. To protect against the potentially devastating costs if both partners needed long-term care, long-term care insurance is an important option to consider.
While long-term care insurance can be expensive, it is possible to use a reverse mortgage to help pay for long-term care insurance premiums. By tapping into the home’s equity, homeowners can purchase a policy without sacrificing their current financial stability.
There are two common strategies when combining a reverse mortgage and long-term care insurance. One strategy is to use the reverse mortgage line of credit to pay for long-term care insurance premiums. The other is to limit the amount of insurance purchased by paying for some long-term care costs using the funds from a reverse mortgage.
Before you choose one option over the other, seek the advice of a qualified elder law attorney or financial planner to find the best option to meet your loved one’s needs.
