LTC HOME CONSIDERATIONS FUNDING THE COVERAGE WHAT IS LTC? WHO NEEDS LTC? MEDICADE/MEDICARE? UNDERSTANDING LTC AVAILABLE SERVICES TYPES OF FACILITIES UNDERSTANDING SOCIAL SECURITY COMPARE POLICIES WORK SHEET QUOTE QUESTIONNAIRE
Consider a Reverse Mortgage. Homeowners that are at least 62 years old can borrow against the equity in their property. However, instead of the homeowner making payments to the bank, as with a traditional mortgage loan, the bank or financial institution makes payments to the homeowner. The loan is repaid, including interest, when the borrower sells the home, moves or dies. The cost is typically 7% to 11% of the homes value. The highest loan limit on the most common type of reverse mortgage is $312,896 in 2005.
Mortgage funds can be used to help pay for medical bills, long term care insurance premiums, pay for care and services in your home, or renovations to the home that may allow the resident to stay in the home instead of moving to a retirement home or even a nursing home.
Home care funded by savings, insurance, or thru reverse mortgage funds can be expected to provide. By example, $72,000 should pay for:
A home health aide working four hours a day for three years;
Adult day care for an Alzheimer’s patient for six years;
$500 a month for a family care-giver, including one day of respite care each week for 14 years.
This may not be the best solution, however, it is a very viable option worthy of consideration.
F. Darrell Lindsey
U.S. Licensed Agent/Broker
Note: See Long-Term Care Insurance as an option.