2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894
March 1st, 2022
When the two of you retired just seven years ago, you took comfort in knowing you were each covered by a Long-Term Care insurance policy with lifetime benefits. Since then, there have been two premium increases, which you have been able to handle. Luckily, the growth in your investments has so far allowed you to keep up with even the steep rise in grocery, heating and gasoline costs.
With all the talk about aging in place, you are undecided on the subject. You enjoy your home (now fully paid for), and certainly hope to spend the rest of your lives there. However, should healthcare needs dictate, either of you could be forced to use a care facility, since neither of your LTC policies includes home care.
Of immediate concern is a recent notice you’ve received from the insurance company describing a third premium increase. The letter offers you several alternatives: maintain your current benefit levels with a 20% increase in premium, keep paying your current premium but accept a longer “waiting period”, or reduce premiums while settling for three to five years of benefit payouts as opposed to lifetime benefits.
A reverse mortgage on your home might provide an answer, even if you don’t need to tap the equity in your home right away. Your mortgage can be set up as a growing line of credit, becoming your safety net against any future rises in LTC insurance premium costs.
You may be “undecided” on aging in place, but a reverse mortgage will allow you enjoy your home together and put that decision on indefinite hold.