One possible solution that works for some people who are planning for long-term care expenses would be to take out a federally insured reverse mortgage called a home equity conversion mortgage (HECM). With these loans you are receiving payments in return for equity in your home. The only requirements to be eligible for a reverse mortgage loan are that you must be at least 62 years of age and have significant equity in the house or own it outright. When you pass away or move, the loan becomes due.
You can use the money you receive from your reverse mortgage to pay for any purpose-whether it is day-to-day living expenses, home remodeling or repairs, paying taxes and insurance, or help with in-home and community based care. At Longevity Planning, we do not offer reverse mortgages, but to find out more you can visit www.hud.gov or ask about them at your local area agency on aging.