OMIT LTC INSURANCE RIDERS NOW, RELYING ON REVERSE MORTGAGE LATER
FOR LONG TERM CARE INSURANCE, REVERSE MORTGAGE CAN REPLACE “RIDERS”
With both children having launched their careers, the two of you have begun to focus your attention on your own future financial security. Now in your early 50s, retirement is probably at least a decade away. Until now, your estate planning has been focused around guaranteeing that the children would be able to enter the workforce free of major debt.
Moving forward, the emphasis has shifted to maintaining your own financial independence. Longterm care insurance has become a priority, and you’ve begun exploring both traditional LTC policies and hybrid options. The most significant cost factor appears to be the addition of inflation protection. You were initially concerned about continuing to pay those premiums once you retire, but you’ve realized that by then your mortgage should be fully paid off—freeing up cash flow that could be redirected toward funding longterm care coverage.
As you refocus from supporting your children to planning for your own future living needs and protection, you’re right to recognize that your home is an asset that should be considered alongside your retirement accounts. While it’s wise to establish longterm care protection now—when you’re more likely to qualify for coverage—you may choose longer “elimination periods” (meaning benefits begin months after a claim rather than immediately) and forgo inflation riders. These two choices can help keep premium costs within a more affordable range.
Then, when you reach age 62, you could establish a reverse mortgage on your home, using tax free* withdrawals from a home equity line of credit to help fund any longterm care expenses that exceed the policy’s coverage limits.
With this “nowandlater” approach, you put longterm care protection in place today while allowing the equity you’re building in your home to help address the higher costs of care later in life.
https://mutualreverse.com/david-garrison
*Please consult a tax advisor.
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 FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
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