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Reverse Mortgage and Life Settlement

A reverse mortgage or life settlement are ways seniors can get help with financial needs. Today, seniors have numerous financial planning options.

Reverse Mortgage

Reverse Mortgages are mortgages in which the homeowner, usually an elderly or retired person, borrows money in the form of annual payments which are charged against the equity of the home. With a reverse mortgage, you remain the owner of your home. You are still responsible for paying property taxes and homeowner insurance and for making property repairs.

There are a variety of reverse mortgage options with some costing allot more than others. The amount you get generally depends on your age and the home's value. In addition, the specific dollar amount available to you will depend on interest rates and closing costs.

It is important to note that all reverse mortgage loans are due and payable when the last surviving borrower dies, sells the home, or permanently moves out of the home. Reverse mortgage lenders can also require repayment at any time if you fail to pay property taxes, fail to properly maintain your home, fail to keep the house insured, declare bankruptcy, commit fraud or misrepresentation, a government agency condemns your property, you abandon your home, rent your home, add a new owner to the title, take new debt against your home, etc. These are all fairly standard provisions to a reverse mortgage.

Make sure you read the loan documents carefully to make certain you understand all of the immediate repayment conditions.

Life Settlement

A life settlement is a way for someone, beyond the age of 65, to sell a life insurance policy for more than it's current cash surrender value. Seniors typically consider a life settlement for the following reasons:

• A life insurance policy is no longer performing as promised. The policy you bought several years ago was promised to 'pay for itself' after a period of time. For whatever reason, the life insurance company now says you have to pay to keep the policy in force.
• The insurance policy is no longer affordable. You don't have or don't want to allocate the funds necessary to pay ongoing premiums.
• The insurance policy no longer serves its intended purpose. The policy was bought to protect your family from income loss, a business against your death, etc. For whatever reason, the policy is no longer needed.
• Financial circumstances. You financial circumstances, unwillingness to sell or mortgage a home, or sell other valuable assets dictates an interest in selling a life insurance policy.

You/the policy owner can qualify for a life settlement if you are beyond the age of 65 and own a universal, term, whole life, survivorship, or group life insurance policy. Funders buy life insurance polices based on a qualification process. Insurance4usa.com has a qualifying worksheet designed to help determine if you qualify for a life settlement. Click here to use the qualifying worksheet.

Other resources

Reverse Mortgage
AARP reverse mortgage information
National Center for Home Equity Conversion Mortgage

Life Settlement
Life settlement quote at Insurance4USA.com
Life insurance quote