Even before retiring just a year ago at age 69, you had decided against moving to a retirement community in favor of remaining in your own home (where you have the space to host a child or grandchild when they are in town to visit you).While far from handy, you’ve formed long term relationships with various repair, yard care, and handyman services, keeping your home updated and in good shape.
Of your many years working in the field of hospital nursing, your highest earnings came during the five years following your husband’s death, when you worked as a traveling nurse. Those extra dollars, along with the death benefit from your spouse’s corporate life insurance, enabled you to cover all the final expenses for him plus remodel the house.
Years ago, you had each taken out long term care insurance; you’ve just received notice that the premium on your policy is yet again due to increase substantially. Through a friend, you heard about “hybrid life insurance”, where the benefit can be used to cover long term care costs; you are considering switching to that type of coverage while you are still healthy enough to qualify. Realizing that you’ll now be paying for a death benefit along with long term care coverage, you nevertheless are attracted by the fact that the premiums will not be increasing once the policy is put in force.
You’re certainly talking about a concern shared by many retirees. According to the American Association for Long Term Care Insurance, a Forbes Advisor Article reveals that in recent years, 84% of long term care protection was linked-benefit (hybrid) coverage.
But, whatever your final choice is on the insurance coverage, consider using your own “housing wealth” to fund the premiums in the form of a reverse mortgage. Once your HECM (Home Equity Conversion Mortgage) has been set up, you can arrange for a regular “draw” to pay the insurance premiums. If you select a hybrid life insurance/ long term care policy, the death benefit portion could go towards paying off any balance remaining on the reverse mortgage loan (this would be relevant only if the children decide to keep the home).
As a now-retired widow whose children live far away (and who are in no position to help you financially), you need to be concerned with budgeting your resources both today and in the years to come. In considering the various insurance options, you’ve made one important and essential life choice – through sickness and health, you’re planning to “stay home”!.
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).
If your heirs want to keep the home after your death, they will have to repay either the full loan balance or 95% of the home’s appraised value, whichever is less. Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant