Continuing the series on Reverse Mortgages, I thought it would be beneficial to note some of the creative ways seniors are using the funds received through this special loan. Most seniors use a Reverse Mortgage to help close a gap between their retirement expenses and their retirement income.

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

Reverse Mortgages and estate planning: 

• 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.

Before making any decision that will affect your retirement planning, discuss this with a trusted Reverse Mortgage Lender and also your financial advisor.