Reverse mortgages have been battered in the media recently, but reverse mortgages are often the perfect solution for cash-strapped seniors. The dollars that come in from reverse mortgages can be the difference between paying basic bills such as food and utilities, and even certain medical expenses or not.
Reverse mortgages are designed for people 62 and over. They enable you to have a bank buy back your home while you’re still living in it. You have to pay the money back (plus interest) when you vacate or sell the home, and there are fees involved. Still, these mortgages do have a place, and they're rapidly finding it.
Here's what you need to consider before you (or your parents) commit to a reverse mortgage:
Your age. These mortgages aren't for everyone, but the older you are, the more likely you are to benefit from one. For one, you probably have more equity in your home. But the other reason is this: Banks calculate the payout based on not only the value of your home, but your age and average expected length of life.
Your situation. A reverse mortgage probably isn't for you if you're not planning to stay in your home for a long time, so consider that upfront. Then think about other factors related to both your current and future lifestyle. People get these loans for a variety of reasons. Some do it to finance an active lifestyle in their retirement, others because the home needs to be repaired or updated with health care equipment or to help with the rising costs of health care.
Learn how the loans work. Most reverse mortgages require no repayment as long as you live in your home. The loan must be repaid in full, along with interest, when the last living borrower dies, sells the home or moves away.
Understand the lender’s role. A lender – typically a bank – will provide you with a loan in an amount ranging from 20 percent to 60 percent of your home’s equity. In exchange, the lender will receive a portion of your home’s value when you die or sell the home.
Choose a payment preference. The loan can be paid to you in three ways: as a lump sum, in regular monthly or quarterly installments, or as a line of credit you can tap as needed.
Know your responsibilities. Borrowers are responsible for property taxes, insurance and home repairs. Your loan could become due and payable in full if you fail to meet those responsibilities.
Assess neighborhood real estate prices. Over time, a reverse mortgage whittles away at the home equity you built up over the years. But if you live in an area where home prices have a history of rising, your home’s equity could continue to go up despite your reverse mortgage. It goes without saying, though, that you can never count on such increases to last forever. As evidence, just consider the housing slump and accompanying foreclosure fallout sweeping real estate markets across the United States.
The reverse mortgage can be an excellent financial planning tool for seniors from all walks of life. It can enhance their retirement years by providing some extra income to help provide seniors with a lifestyle of their choice. They can be used as part of their estate or legacy planning.
For more information on long-term care financing and planning, visit LongTermCareInsurancePros. and download a Free Ebook.
Friday, August 29, 2008
Monday, August 25, 2008
What is Your Suitability, Insurability for Long-Term Care Insurance
Prudential Financial newly issued 2008 Long-Term Care Cost of Care research report is a valuable resource for consumers seeking information to help them make informed decisions about their long-term care needs. The study found an increase in the average cost of long-term care ranging from 5 percent to 13 percent, varying by type of service, in the past two years alone.
Prudential's Cost of Care study sheds light on the State-specific average costs associated with nursing homes, assisted living facilities, and home health care services. National average cost of Assisted living facility care is more than $100/day or $3241 per month or about $37,000 per year. the cost of a private room in a nursing home has reached $217/ day or $79,205 annually. Home health care rates have also risen to an average of $21/ hour for an increase of 5-10 percent over the rates two years ago.
The fact is, without proper planning, the annual cost of long-term care can quickly deplete even a sizable nest egg. Many of us do not want to think about 'that time' when we may need care in an assisted living facility, a nursing home, or at home care. It makes good sense that you consider the costs now and implement a financial plan today to help ensure you receive the quality of care you desire.
To determine the suitability of long-term care insurance for your unique situation, the costs of long-term care insurance and your insurability, contact me at 949-854-3001 or email at dane@longtermcareinsurancepros.com
For A Quote
Prudential's Cost of Care study sheds light on the State-specific average costs associated with nursing homes, assisted living facilities, and home health care services. National average cost of Assisted living facility care is more than $100/day or $3241 per month or about $37,000 per year. the cost of a private room in a nursing home has reached $217/ day or $79,205 annually. Home health care rates have also risen to an average of $21/ hour for an increase of 5-10 percent over the rates two years ago.
The fact is, without proper planning, the annual cost of long-term care can quickly deplete even a sizable nest egg. Many of us do not want to think about 'that time' when we may need care in an assisted living facility, a nursing home, or at home care. It makes good sense that you consider the costs now and implement a financial plan today to help ensure you receive the quality of care you desire.
To determine the suitability of long-term care insurance for your unique situation, the costs of long-term care insurance and your insurability, contact me at 949-854-3001 or email at dane@longtermcareinsurancepros.com
For A Quote
Friday, August 22, 2008
Checklist for Choosing the Best Long-Term Care Facility
Let’s suppose you have properly done all of your long-term care financing and planning. You have either purchased long-term care insurance or have a bundle of money readily accessible to pay for your long-term care needs.
With the right long-term care plan in place, there won’t be the stress and strain of trying to liquidate property or stocks at a time where you may incur losses or pay a hefty tax bill.
With that said, it is now time to look for a long-term care facility. In order to help make an educated decision of which facility is best, here is checklist of questions you should ask yourself when visiting the facilities. The checklist is broken down into different areas of importance regarding the facility and its amenities.
For the complete checklist Visit The Best Questions to Ask
For more inforamtion on Long-Term Care planning and Long-Term Care insurance, consult with a Long-Term Care Specialist (LTCP, CLTC).
With the right long-term care plan in place, there won’t be the stress and strain of trying to liquidate property or stocks at a time where you may incur losses or pay a hefty tax bill.
With that said, it is now time to look for a long-term care facility. In order to help make an educated decision of which facility is best, here is checklist of questions you should ask yourself when visiting the facilities. The checklist is broken down into different areas of importance regarding the facility and its amenities.
For the complete checklist Visit The Best Questions to Ask
For more inforamtion on Long-Term Care planning and Long-Term Care insurance, consult with a Long-Term Care Specialist (LTCP, CLTC).
Monday, August 18, 2008
Long-Term Care Insurance-Helps You Plan for Your Future
Long-term care insurance is a necessary part of responsible planning for your future. Most people spend their lives planning for the best quality of life. Quality of life is different for everyone. One may want to sit on the beach while others would rather play tennis or golf.
We work hard to provide for the best quality of life while we are young and physically active. When it comes time to think about planning for our future when we may or may not be as physically active something amazing happens. The planning usually stops and goes into coasting mode.
Coasting? What does that mean? It means that most people go into denial and just plain do not want to think about planning for a time when they may need some kind of assistance with their daily activities. The next is that without any education most think that long-term care insurance is just too expensive. Another reason no planning is done is procrastination. It is easy to procrastinate about purchasing long-term care insurance today because you feel great at this moment and so it can wait.According to the Employee Benefit Research Institute (EBRI), it is expected that a married couple at age 65 in 2008 without employer-based retiree health benefits, will need $194,000 in savings to have a 50% chance of having enough money to cover Medigap premiums. Medicare Part B premiums, Medicare Part D premiums and median out-of-pocket prescriptions drug expenses throughout retirement.
To have a 75% chance of having enough money to cover these expenses they would need $253,000, and to have a 90% chance they would need $305,000. If out-of-pocket drug costs are higher, the savings needed would increase. These savings do not include what might be needed for any long-term care expenses.
The expense of a Long-term care insurance policy seems insignificant to what it costs today for long-term care. It is important to understand what long-term care is. It is care that is needed above and beyond the time period that is covered by Medicare or any major medical insurance. It includes intermediate or custodial care (not covered by Medicare) and can be performed in many different settings such as in your own home, adult day care, respite care, assisted living and in a nursing home.
According the Met Life Mature Market survey, the national average daily rate for a private room in a nursing home is $213 or $77,745 annually. The annual premium is more affordable than spending anywhere from $3000-$7000 a month for care. Doesn’t it make sense to pay a premium averaging $900 to $2000 per year now than pay huge amounts later which may jeopardize your family’s lifestyle both financially and emotionally.
The bottom line is America needs to be educated in long-term care financing and planning. The best way is to consult with a Long-Term Care Specialist. A Specialist who has additional education and training (LTCP, CLTC) in long-term care planning as well as being State Partnership certified.
An independent Long-Term Care Specialist shows no bias toward any one company. He knows the language of the policies, knows the different features of the different companies so he can help you compare the different plans. His goal is to educate first and then design (with your help) a plan that fits your budget and situation.
We work hard to provide for the best quality of life while we are young and physically active. When it comes time to think about planning for our future when we may or may not be as physically active something amazing happens. The planning usually stops and goes into coasting mode.
Coasting? What does that mean? It means that most people go into denial and just plain do not want to think about planning for a time when they may need some kind of assistance with their daily activities. The next is that without any education most think that long-term care insurance is just too expensive. Another reason no planning is done is procrastination. It is easy to procrastinate about purchasing long-term care insurance today because you feel great at this moment and so it can wait.According to the Employee Benefit Research Institute (EBRI), it is expected that a married couple at age 65 in 2008 without employer-based retiree health benefits, will need $194,000 in savings to have a 50% chance of having enough money to cover Medigap premiums. Medicare Part B premiums, Medicare Part D premiums and median out-of-pocket prescriptions drug expenses throughout retirement.
To have a 75% chance of having enough money to cover these expenses they would need $253,000, and to have a 90% chance they would need $305,000. If out-of-pocket drug costs are higher, the savings needed would increase. These savings do not include what might be needed for any long-term care expenses.
The expense of a Long-term care insurance policy seems insignificant to what it costs today for long-term care. It is important to understand what long-term care is. It is care that is needed above and beyond the time period that is covered by Medicare or any major medical insurance. It includes intermediate or custodial care (not covered by Medicare) and can be performed in many different settings such as in your own home, adult day care, respite care, assisted living and in a nursing home.
According the Met Life Mature Market survey, the national average daily rate for a private room in a nursing home is $213 or $77,745 annually. The annual premium is more affordable than spending anywhere from $3000-$7000 a month for care. Doesn’t it make sense to pay a premium averaging $900 to $2000 per year now than pay huge amounts later which may jeopardize your family’s lifestyle both financially and emotionally.
The bottom line is America needs to be educated in long-term care financing and planning. The best way is to consult with a Long-Term Care Specialist. A Specialist who has additional education and training (LTCP, CLTC) in long-term care planning as well as being State Partnership certified.
An independent Long-Term Care Specialist shows no bias toward any one company. He knows the language of the policies, knows the different features of the different companies so he can help you compare the different plans. His goal is to educate first and then design (with your help) a plan that fits your budget and situation.
Sunday, August 17, 2008
Long-Term Care Insurance-Helps You Plan For Your Future
Long-term care insurance is a necessary part of responsible planning for your future. Most people spend their lives planning for the best quality of life. Quality of life is different for everyone. One may want to sit on the beach while others would rather play tennis or golf. We work hard to provide for the best quality of life while we are young and physically active. When it comes time to think about planning for our future when we may or may not be as physically active something amazing happens. The planning usually stops and goes into coasting mode.
Coasting? What does that mean? It means that most people go into denial and just plain do not want to think about planning for a time when they may need some kind of assistance with their daily activities. The next is that without any education most think that long-term care insurance is just too expensive. Another reason no planning is done is procrastination. It is easy to procrastinate about purchasing long-term care insurance today because you feel great at this moment and so it can wait.
According to the Employee Benefit Research Institute (EBRI), it is expected that a married couple at age 65 in 2008 without employer-based retiree health benefits, will need $194,000 in savings to have a 50% chance of having enough money to cover Medigap premiums. Medicare Part B premiums, Medicare Part D premiums and median out-of-pocket prescriptions drug expenses throughout retirement.
To have a 75% chance of having enough money to cover these expenses they would need $253,000, and to have a 90% chance they would need $305,000. If out-of-pocket drug costs are higher, the savings needed would increase. These savings do not include what might be needed for any long-term care expenses.
The expense of a Long-term care insurance policy seems insignificant to what it costs today for long-term care.
It is important to understand what long-term care is. It is care that is needed above and beyond the time period that is covered by Medicare or any major medical insurance. It includes intermediate or custodial care (not covered by Medicare) and can be performed in many different settings such as in your own home, adult day care, respite care, assisted living and in a nursing home.
According the Met Life Mature Market survey, the national average daily rate for a private room in a nursing home is $213 or $77,745 annually. The annual premium is more affordable than spending anywhere from $3000-$7000 a month for care. Doesn't it make sense to pay a premium averaging $900 to $2000 per year now than pay huge amounts later which may jeopardize your families lifestyle both financially and emotionally.
The bottom line is America needs to be educated in long-term care financing and planning. The best way is to consult with a Long-Term Care Specialist. A Specialist who has additional education and training (LTCP, CLTC) in long-term care planning as well as being State Partnership certified.
An independent Long-Term Care Specialist shows no bias toward any one company. He knows the language of the policies, knows the different features of the different companies so he can help you compare the different plans. His goal is to educate first and then design (with your help) a plan that fits your budget and situation.
You can get Free information and articles regarding Long-Term Care and Long-Term Care insurance at http://www.LongTermCareInsurancePros.com and download a Free Ebook.
Coasting? What does that mean? It means that most people go into denial and just plain do not want to think about planning for a time when they may need some kind of assistance with their daily activities. The next is that without any education most think that long-term care insurance is just too expensive. Another reason no planning is done is procrastination. It is easy to procrastinate about purchasing long-term care insurance today because you feel great at this moment and so it can wait.
According to the Employee Benefit Research Institute (EBRI), it is expected that a married couple at age 65 in 2008 without employer-based retiree health benefits, will need $194,000 in savings to have a 50% chance of having enough money to cover Medigap premiums. Medicare Part B premiums, Medicare Part D premiums and median out-of-pocket prescriptions drug expenses throughout retirement.
To have a 75% chance of having enough money to cover these expenses they would need $253,000, and to have a 90% chance they would need $305,000. If out-of-pocket drug costs are higher, the savings needed would increase. These savings do not include what might be needed for any long-term care expenses.
The expense of a Long-term care insurance policy seems insignificant to what it costs today for long-term care.
It is important to understand what long-term care is. It is care that is needed above and beyond the time period that is covered by Medicare or any major medical insurance. It includes intermediate or custodial care (not covered by Medicare) and can be performed in many different settings such as in your own home, adult day care, respite care, assisted living and in a nursing home.
According the Met Life Mature Market survey, the national average daily rate for a private room in a nursing home is $213 or $77,745 annually. The annual premium is more affordable than spending anywhere from $3000-$7000 a month for care. Doesn't it make sense to pay a premium averaging $900 to $2000 per year now than pay huge amounts later which may jeopardize your families lifestyle both financially and emotionally.
The bottom line is America needs to be educated in long-term care financing and planning. The best way is to consult with a Long-Term Care Specialist. A Specialist who has additional education and training (LTCP, CLTC) in long-term care planning as well as being State Partnership certified.
An independent Long-Term Care Specialist shows no bias toward any one company. He knows the language of the policies, knows the different features of the different companies so he can help you compare the different plans. His goal is to educate first and then design (with your help) a plan that fits your budget and situation.
You can get Free information and articles regarding Long-Term Care and Long-Term Care insurance at http://www.LongTermCareInsurancePros.com and download a Free Ebook.
Monday, August 11, 2008
Long-Term Care Insurance Instant Quote vs.Expertise of a Long-Term Care Insurance Specialist
Don't waste your time with meaningless quotes that will not give you an "apples to apples" quote. The easiest and fastest way to get the information you want and need about long-term care insurance is to consult directly with a Long-Term Care specialist. Together you can choose the most appropriate policy for you.
There are two reasons that long-term care insurance quotes cannot be automated...
There are two reasons that long-term care insurance quotes cannot be automated...
- Product Complexity- Long-term care insurance coverage is pieced together from many complex options which are best discussed with a licensed independent specialist who knows the laws, companies and policies in your particular state. It not "one size fits all", so generic quotes are basically meaningless.
- Suitability laws- Unlike other types of insurance, state laws require that a licensed insurance agent determine whether your selected long-term care coverage is uniquely suitable for you. Since long-term care insurance is so complex, these laws have been made to protect you, the consumer, from buying a policy that may not provide the coverage that you want or need.If you have have a long-term care insurance policy, and you question the value of your current policy, then you might want to have it looked over by a Long-Term Care Specialist.
Long Term Care Insurance Pros is an unbiased, independent and experienced specialist dedicated to being absolutely honest.
See for yourself and schedule a consultation.
Wednesday, August 6, 2008
Guidelines for Shopping and Selecting the Right Long-Term Care Insurance
When selecting a long term care insurance policy or getting a long term care insurance quote, it's important to look for a policy that not only you can afford but also meets your needs. There are many insurance policies covering Long Term Care available today. Policies can vary widely in terms of benefits they'll offer, terms of the contract, and features. Choosing the right long term care insurance policy is not simple.
Using the guidelines found in the article at Long Term Care Insurance Pros and with the expertise of a long-term care insurance specialist, you will have an easier time understanding the nuances of the long-term care insurance policy. It is important to understand the different options available and how they differ from company to company.
There are many more options to consider when evaluating long-term care insurance policies. Long-term care insurance is more complicated than life insurance or health insurance, so it’s best to consult with a Long-Term care insurance specialist. The process is simplified and made easy to understand. It is the best way to design a plan for is suitable for you and your situation.
Using the guidelines found in the article at Long Term Care Insurance Pros and with the expertise of a long-term care insurance specialist, you will have an easier time understanding the nuances of the long-term care insurance policy. It is important to understand the different options available and how they differ from company to company.
There are many more options to consider when evaluating long-term care insurance policies. Long-term care insurance is more complicated than life insurance or health insurance, so it’s best to consult with a Long-Term care insurance specialist. The process is simplified and made easy to understand. It is the best way to design a plan for is suitable for you and your situation.
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