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#50 Using A Reverse Mortgage To Finance Long-Term Care (LTC) Premiums


David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894

Hopefully, your list of “daily living activities” includes things such as dancing, golfing, cooking favorite dishes and winning at cards. Odds are, however, as the U.S. Department of Health and Human Services cautions, that as you age, you’ll need at least some assistance with what they define as Activities of Daily Living – bathing, dressing, feeding, ambulating, and continence management.  That kind of assistance with routine needs is offered at a myriad of assisted living facilities and nursing homes, but you, like a steadily growing number of people planning their retirement, envision “aging in place” right in your own home. 

Because assistance with ADLs not covered by either regular health insurance or by Medicare, purchasing long term care insurance is one of the best ways to prepare for those healthcare costs. However (as Tevye bemoaned in Fiddler on the Roof), “It isn’t easy!” Premiums for long term care insurance policies are in the four figures annually, and are often subject to rate increases over the years. 

A reverse mortgage can be the answer, providing income to pay those premiums – or to prevent your long term care insurance policy from lapsing. Your mortgage can be set up as a growing line of credit, becoming your safety net in the event of rising premium costs.  You may opt for a monthly or quarterly cash inflow to cover premium costs beginning at retirement or postpone withdrawals until needed. It will be comforting to realize that, with your reverse mortgage in place, during those inevitable “down market “periods, there will be no need to put further strain on your investment portfolio assets.

Aging in place – and in style – starts with good planning now!