Reverse Mortgages and Specially Designed Life Insurance Save You Thousands in Taxes and Guarantee What You Leave Behind

In this era of greatly reduced personal and corporate pension plans, Americans are looking for additional retirement income streams. The potential to receive an income from your home is an additional option that bears investigation, since many Americans need to get their assets working harder for them. The reverse mortgage option becomes extremely attractive when you combine it with Specially Designed Life Insurance SDLI) life insurance.

Reverse Mortgage Qualifications
To qualify for a reverse mortgage you and your spouse, if applicable, both must be at least 62 years of age, own your home (even with a mortgage, as the mortgage can be paid off, eliminating mortgage payments altogether) and you must occupy the home as your primary residence. There are no income or credit requirements for a reverse mortgage. Eligible property types include detached, single family homes, condominiums, manufactured homes and up to four unit, owner-occupied multi-family dwellings.

The primary benefit of a reverse mortgage is that you are not required to repay the loan as long as you reside in the home as your primary residence. The loan is due when the borrower sells the home, permanently moves away or dies. The loan is typically repaid by selling or refinancing the home. The great thing about reverse mortgages is that they are non-recourse loans; meaning that the borrower can never owe more than the property is worth.

Special Designed Life Insurance
The advantages of a reverse mortgage get really exciting when they are combined with SDLI. SDLI can replace the home equity that gets spent down in a reverse mortgage. This is how it works; the home owner receives tax free income out of the home from the reverse mortgage, on the borrower’s death, the SDLI gives the borrower’s beneficiaries tax free income proceeds that replace the equity of the borrower’s home that was spent down during the retirement period.

This scenario allows you to spend down your asset (in this case your home equity) for retirement income and creates a liquid, divisible income tax-free asset (the death benefit) for your heirs. Studies show that the majority of seniors would rather live in their home as long as possible rather than go into an assisted living facility or nursing home. By using a reverse mortgage to stay in their home, seniors will reduce the need for institutional care, save the costs associated with that option and then be able to pass those savings, tax free, to their heirs. It’s a win-win situation for everyone.

The Total Strategy Approach
In order to execute this strategy effectively, you need a financial advisor that uses a total strategy approach to implement the components properly. Combining a reverse mortgage with SDLI not only requires that each of the financial vehicles be tailored to fit with your personal wealth goals, but that the mortgage and the insurance policies also be tailored so that they fit with each other. The financial advisor must have in-depth knowledge of the strategy, the individual products that are being used and the effects of these products on one another. In this way, your goals are met in the most financially efficient manner.

We have assembled a unique team of experts that strive to fully comprehend your goals and to understand the strategies that are being used to achieve those goals. If you want to increase your income in retirement and then pass the proceeds of your life’s work tax free to your heirs, then the reverse mortgage/SDLI strategy is something you should investigate. To see if this strategy can benefit you and your heirs, call Millie at (800) 917-8422 to schedule a no-obligation consultation.