Most people don’t realize that Medicare doesn’t cover long-term care, even though a person turning 65 today has almost a 70 percent chance of needing help as they age.
A reverse mortgage is one option that can help pay for this type of care, says Medicare expert Diane Omdahl.
“A reverse mortgage is a special type of home equity loan that allows the mortgage holder to receive cash against the value of a home without selling it,” says Omdahl. “An approved reverse mortgage counselor can discuss the many considerations, including how the mortgage will work, the criteria for spending the funds, and what heirs need to know.”
Other ways to pay include traditional long-term care insurance (or a hybrid policy that combines life insurance and long-term care insurance), annuities, health savings accounts, charitable remainder trusts, Medicare Advantage plans and Medicaid.