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Planning Guide for Older Consumers

Planning Guide For Older Consumers
When you are in good health, it is hard to imagine that you will ever need help with everyday tasks at home. But a serious fall or chronic illness can quickly drain hardearned retirement dollars and leave you facing a cash crunch. Planning for your future health needs can be frustrating. As you get older, high quality long-term care insurance may become unaffordable. Some people do not want to rely on government or deplete their retirement funds to qualify for public programs. If you are like most people, you could end up using a “pay as you go” approach, where you rely on income and savings, and hope for the best.

There is another option. For many older families, home equity is their single, biggest financial asset. Using home equity through a reverse mortgage could be an important strategy to help deal with the financial challenges of living at home with a chronic health problem. Reverse mortgages are a special type of loan that allows people age 62 and older to convert home equity into cash while they continue to live at home for as long as they want. These types of loans are called “reverse” mortgages because payments flow from the lender to the homeowner.

Many people hold onto the equity in their home as a nest-egg to deal with financial emergencies. But a reverse mortgage can be more than just a last resort. If used wisely, these loans can pay for preventive measures and day-to-day support so you can continue to live at home safely and comfortably.

They can also strengthen your financial plans by filling in gaps, and can help you manage your cash flow to deal with declining health and ability.
Using home equity for a chronic health condition can seem like a good idea. But is it right for you? It is a decision you should consider carefully since the house may be your most valuable financial resource.

This booklet will help you to understand whether a reverse mortgage can be a part of your financial plans for staying at home. After reading this booklet, you should be able to:

  • Understand your risks for needing help at home due to a chronic health problem.
  • Identify the financing options that may be available.
  • Know about the benefits and challenges of using a reverse mortgage for aging in place.
  • Know where to go for more information.

It is important to remember that every person’s situation is unique, so there are no right or wrong answers. The information presented here will help you plan ahead so you can continue to live at home as long as possible. It also helps to talk with family and a knowledgeable financial advisor.

Download Planning Guide For Older Consumers