Reverse Mortgage and a Life Insurance Policy

I found this snippet of information on a local news site. I just wanted to add that many seniors are now taking a reverse mortgage and then using some of the funds for a life insurance policy. This policy will cover the loan, fees, and interest so they will still have the option to hand over a fully paid off house to their heirs. Something to think about...

Another option, independent of the city, is a reverse mortgage, which allows homeowners age 62 and older to borrow the equity in their homes. It provides another source of income for "house rich" seniors, but many don't like reverse mortgages, Crain said. They want to pass their homes to their children without having to pay back the loan and extra fees, he said.

The tax burden is one of many challenges for seniors, who often struggle with health problems and trying to remain independent, Crain said.

"Senior advocates are always pushing for increases in the tax credits," Crain said. "There are just so many needs for the senior population."

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