According to NewRetirement.com, these loans can help with medical expenses and also estate and retirement planning.
Medical needs met through a Reverse Mortgage:
- Funding for healthcare, medical treatment that medicare or your insurance does not cover
- Funding for long-term care and/or long-term care insurance
- Funding for life insurance to leave something to your heirs
- The loan lowers the total value of your estate, which will lower the estate tax liability
- Life insurance policies pay the benefits to your heirs, which will be in tax-free dollars, leaving your heirs a guaranteed sum, rather than the entire value of your home being at the mercy of the real estate market.