6. Reverse mortgages
Next on our list of alternatives to long-term care insurance is taking out an annuity with a long-term care rider. This is a great option for people who aren’t eligible for traditional long-term care insurance. You can use the money invested in an annuity with a long-term care rider without paying taxes on it to cover the long-term care expenses as defined under the contract.
Most reverse mortgages are originated through the federally insured Hoe Equity Conversion Mortgage program. This option enables qualified homeowners age 62 and older to make a non-recourse loan.
According to financial experts, the key is to be practical about whether your house is suitable for aging in place. In other words, if you’re going to do a reverse mortgage, it’s important to ensure you can live in your home for a long period of time.
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