Beware the Lure of Long-Term Care Insurance Policies Funded by Reverse Mortgages
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, reverse mortgage February 21st, 2008ONTARIO, Calif., Feb. 19 /PRNewswire/ — Every day, baby boomers are turning 60, says Frank N. Darras, the nation’s leading disability and long-term care insurance lawyer. 75 million Americans over 50 are being aggressively targeted as potential new customers and every year, this number increases by 4 million.
With 75 million potential new customers the insurance industry is creating a variety of feature-rich, long-term care insurance policies funded by reverse mortgages so seniors can afford to make the high premium payments,” says Darras. See http://www.darrasnews.com/.
“Not so fast,” warns Darras.
There are ways to get a reverse mortgage and there are limits as well. If you have built up equity in your home, you can convert a portion of that equity into cash. The equity built up over years of home mortgage payments can be paid to you. Unlike a traditional home mortgage or a second trust deed, no repayment is required with a reverse mortgage until the borrower(s) no longer use the home as their principal residence.
“Betting your house on an insurance policy can backfire and leave you with nothing,” says Darras.
Darras explains, Just Say No:
If you get a value on your house and agree to receive a monthly payment for 10 years, that sounds okay. You live longer than those…
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