HECM Can Finance Purchase Of Long-Term Care Insurance
The high and rising costs associated with long-term care are something to take very seriously when you
are making preparations for the latter portion of your life.
If you combine the typical length of stay with the average cost of nursing home care you could be
looking at an expense that exceeds a quarter of a million dollars. This is an amount that a lot of people
would find difficult to pay without seeing a significant portion of their legacies going down the drain.
You are on your own when it comes to long-term care costs because Medicare does not cover them.
Some people can qualify for Medicaid however, and another option would be to purchase long-term
Long-term care insurance premiums are quite expensive, and one option that is available to you would
be to take out a home equity conversion mortgage and use the income to pay for long-term care
insurance. These HECMs are federally backed reverse mortgages.
The mortgage becomes due when you either die or move from the home voluntarily. If you entered a
nursing home, you or your family could then sell the house and pay the loan with part of the proceeds
from the sale. The remainder is of course yours to keep.
To explore this and other strategies for long-term care financing, take action right now to arrange for a
consultation with a good elder law attorney.
Experienced estate planning attorneys Mobile AL of the Ryan Hicks Cumpton & Cumpton LLP offers
estate planning and business planning resources to residents of Mobile AL. To learn more about these
free resources, please visit http://www.epattorneys.com today.