The Risks of Serious Illness and Reverse Mortgages

Seniors worked hard all of their lives to create a financial estate from which they had planned to live their retirement years to the fullest and leave a significant legacy to their beneficiaries. Among the primary issues threatening this goal for senior homeowners today are the costs and management of a serious illness and the way it may affect their current lives and future plans. For a married couple, the anxiety surrounding the incapacity of one spouse and their sudden dependence on the other can be disquieting and often overwhelming. For all seniors, the hope of living longer combined with the fear of outliving their finances is becoming a startling reality as expenses continue to rise and savings rates remain historically low. Senior homeowners may face any of the following circumstances regarding the costs of long-term health and medical care should serious illness befall them:

- the possibility of losing their home
- the choice between a nursing home vs. preferred in-home care
- the rapid depletion of their financial security
- the inability to leave a legacy to those they love

A reverse mortgage is the one financial instrument that can help to address many of these uncertainties. Through the withdrawal of some of the equity in a senior homeowner’s primary residence and the proper utilization of those funds, a number of factors are changed which significantly improve the state of affairs regarding the potential risks of a serious illness.

• A reverse mortgage is a lien against the value of a primary residence. Therefore, any obligations based upon the value of assets must subtract this lien. This lowers the current and future value of the estate while enhancing fiscal liquidity.

• Funds from a reverse mortgage can be used to purchase Long-term Care Insurance, thereby addressing the concern about health and medical care costs.

• Funds from a reverse mortgage can be used to supplement monthly income to provide for preferred in-home health or medical care, as well as increases in the cost of living.

• Funds from a reverse mortgage can be used to purchase Life Insurance, thereby assuring a legacy to beneficiaries that may even exceed the value of the original estate.

A reverse mortgage can offer senior homeowners the ability to meet their current needs and strengthen their financial future. When a senior homeowner utilizes these funds to purchase investments that protect their health and well being and enhance the total worth of their estate, the value of a reverse mortgage is truly realized.

If you feel you would benefit from a closer look at how a reverse mortgage could work for you, please contact Stephen V. Lamoreaux, Reverse Mortgage Specialist –

(203) 595-9610 or (800) 562-6365x376 or email steve@dmlmortgage.com