“10% of Surveyed Seniors Say They’ll Fund Long-Term Care with Reverse Mortgages,” by Alex Spanko, Reverse Mortgage Daily
“A recent survey found that 10% of seniors aging alone plan on using reverse mortgages to pay for long-term care costs — a number that lags behind other sources, but still represents a potential area of opportunity for the industry. The vast majority of respondents — 68% — identified savings and investments as a source of long-termcare funding, followed by “out of pocket” at 47% and long-term care insurance at 33%. Only life insurance had fewer responses, with just 3% of respondents mentioning those products or life settlements.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
How ironic! No mention of Medicaid which pays for most high LTC costs. In real life, people rarely use reverse mortgages to fund long-term care. That’s what the experts always told me in our many state and national studies of LTC financing. What actually happens is that when it comes time to require care, the homeowner is often incapacitated so the adult children are making decisions. They learn Medicaid exempts the home, Dad goes to the nursing home on welfare, the family plans a way round estate recovery (not hard), and often an elder law attorney pockets a big fee.