Many family members and relatives try to not think about the time that may come in life when they will begin having to consider care options for their senior loved one. Funding home care is complicated and a big commitment that many do not adequately plan or prepare financially. Even if a senior has planned and saved, the costs are significant and can be very strenuous. Fortunately, even if there have been some hiccups in the financial preparedness plan for either yourself or your senior loved one, there are a few new ways home care can be funded these days.
The first new option in paying for senior home care is through a reverse mortgage. In the past couple of years, the rules and policies of reverse mortgage have changed significantly. These practices that have been put in place in recent times now favor seniors who are in need of home care or assisted living services.
At Harmony Home Care, we work closely with Reverse4Care. We have a close, personal relationship with the owner and have no reservations referring to him or getting his advice or input on the top of funding home care as a senior. So, you may be wondering what exactly is Reverse4Care and what does a reverse mortgage do?
The Reverse4Care mortgage is a loan that was created for senior homeowners to convert their home equity into cash to help pay for at-home care expenses. Following the standard reverse mortgage guidelines, this loan helps protect seniors and allow them to live better lives. The mortgage does not have to be repaid until the last surviving homeowner either moves out of the home or passes away. A fixed amount of money will automatically be deposited into a senior’s bank account each month through the Reverse4Care loan program. The exact amount is determined by a few factors, but allows seniors to use the money to fund their care expenses.
To qualify for a Reverse4Care mortgage, at least one spouse must be 62 or older, you must live in the property, and must meet the minimum equity, credit, and income requirements as determined by the lender. The mortgage does not have to be repaid until the last surviving homeowner either moves out of the home or passes away.
Another helpful option is selling your life insurance policy. A company Harmony Home Care recommends is LifeCare Funding. This company will buy your policy and provide funds specifically for senior care at about 50% of the value of the policy. This allotted money will help you pay for at-home senior care options as you need them later in life.
If you or your senior loved one may need professional care services, our team at Harmony Home Care would be happy to speak with you. Give us a call at 916-933-9777 or visit our website. Our professionals are eager to serve those in need of caregiving assistance in Sacramento, El Dorado, Placer, and Yolo counties. For daily tips, advice, and news, follow us on Facebook, Twitter, LinkedIn, and Google Plus.