Page 1 - AAG042_Senior Care Trifold

A New Solution to the Senior
Care Challenge

For homeowners age 62 and older, a Home Equity Conversion
Mortgage (HECM), also known as a reverse mortgage loan can be
used as a senior care funding strategy. This intelligent retirement
funding tool leverages the power of an important financial asset—
home equity—to help seniors receive the care they need, while they
continue to live in their own home.

l In-home care services can reduce the need for
expensive nursing homes, and improve quality of care. 4

l Services can be gradually ramped up as needed—from
help with household chores to 24-hour nursing care.

l A HECM reverse mortgage standby line of credit can be The Four Questions
set up in advance—before care is needed—so funding is
at-the-ready. all 40- and 50-something-year-old adults should be
asking themselves:
l Unlike a traditional home equity line of credit (HELOC),
the unused portion of the HECM reverse mortgage line ONE Can my parents afford upwards of $103,000 per
of credit can grow over time, allowing access to more year each for nursing home care? 2
funds as the borrower ages. The line of credit cannot
be reduced or revoked by the lender, as long as the TWO Do they have a long-term care insurance policy?
terms of the loan are met (except in special cases, for
instance if fraud is suspected the line may be frozen to THREE Does my financial plan include $103,000 or
protect the borrower). more per year for my parent’s nursing care? 2

l There are no monthly mortgage payments for FOUR Am I planning on my parents and/or in-
borrowers as long as they live in their home and laws moving into my home, and being their care
Tom Selleck, continue to pay for property taxes, homeowner’s
American insurance and home maintenance and otherwise provider?
Advisors
Group Paid comply with the loan terms. FIVE If my parents have made no plans for their
Spokesperson
l Reverse mortgage loan proceeds are tax-free.* eventual care, how will that affect my own
*Consult your tax advisor. financial plan?

Call today to learn more!

AAG.com/SeniorCare
4 The Joint Commission Home Care Program. “Home -The Best Place for Health Care.” 2011
http://www.johnahartford.org/images/uploads/resources/Home_Care_ position_paper_4_5_111.pdf