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Some retirees opt to pay long-term care costs with reverse mortgage, AARP says 2010-01-22 The lack of a cohesive long-term care system means that many people must pay for care out of their own pocketbook, leading some to take out a reverse mortgage. According to AARP legislative policy director David Certner, America's long-term care system is "really more ad hoc" than explicitly laid out. Older people essentially have three options at the moment, Certner said to MarketWatch: pay for care with their savings, take out a reverse mortgage to pay or rely on long-term care insurance. While the insurance route may seem palatable, it's also expensive to buy in - and the older a person is, the higher their premium costs will be. The reverse mortgage option can be ideal for retirees who have no other means of paying for long-term care. But the time to think about long-term care needs is when a person is younger and healthier, experts recommend. That's true of Medicare, too: The program requires careful planning. Joe Baker, president of the nonprofit Medicare Rights Center, recommends that Medicare beneficiaries consider the Medigap supplemental policy to save money down the road.  |
