LTC Bullet:  A Home Can Protect Both Health and Wealth 

Wednesday, November 28, 2007 


LTC Comment:  Is it appropriate and cost-effective to use a reverse mortgage to fund long-term care insurance?  Here's a short article claiming it is and offering an analytical model to prove the point, after the ***news.*** 

*** LTC TOUR UPDATE.  Interest in and support for the Center for Long-Term Care Reform's National Long-Term Care Consciousness Tour continue to grow.  In fact, available dates on our Southeast itinerary for January-February 2008 are going fast.  Contact the Center ASAP to learn more and get on board:  206-283-7036 or 

Steve Moses says:  "The 'Silver Bullet of Long-Term Care' has arrived at the Airstream dealership in Tampa.  I'll pick it up in late December, airbrush the logos of LTC Tour sponsors onto it, hook up with the silver FJ Cruiser that's already in port in Jacksonville and begin the Tour.  Maybe this isn't 'Got Milk,' but I guarantee it will attract huge public attention to the importance of responsible LTC planning."  Check out a picture of the Silver Bullet and all the details about the LTC Tour at the top of 

The LTC Tour begins January 1, 2008 in Tampa.  We'll move down the West coast of Florida doing programs in Ft. Myers and Naples.  Then we'll cross Alligator Alley to Miami, head up to Orlando, and meet with some politicos in Tallahassee (the state capital) en route to events in North Carolina including a speech to the state nursing home association.  Then comes Knoxville and Nashville, Tennessee, Columbia, South Carolina and several events in and around Atlanta, Georgia, including the 2008 LTCI Producers Summit.  [Come see us at the Producers Summit.  See for details and registration.] 

That's it for starters.  We're hoping the big intercompany long-term care insurance conference scheduled for March 16-19 in Jacksonville, Florida will also have a place for the LTC Tour and the "Silver Bullet" to attract positive media attention.  What a contrast to the blistering attack on the industry in the New York Times at the start of last year's conference!  [Details and registration for the 8th Annual Intercompany Long-Term Care Insurance Conference are at] *** 



LTC Comment:  We've always thought reverse mortgages could help many Americans bear the cost of long-term care insurance protection.   It's controversial to some.  In fact, when I see ads, as I did this morning, touting big commissions instead of benefits to seniors, it bothers me for sure.   

But home equity is by far the biggest repository of private wealth available to help aging Americans obtain quality long-term care and avoid the Medicaid trap.  So using relatively small amounts of home equity to fund full LTC insurance protection is worthy of consideration and analysis.   

Following is a brief article by a reverse mortgage specialist who says he's run the numbers.  Read his overview and follow up regarding the computational model if you're of a mind to do so.  He'll send you a Beta version for free and would appreciate receiving your analysis and opinion in return. 


"A Home Can Protect Both Health and Wealth"
Stephen Lamoreaux

More seniors are recognizing the need for long-term care insurance to protect their assets and relieve the financial burden of medical expenses on their families.  In many cases, younger seniors are, or have recently been, care givers for their elderly parents or relatives.   

One obstacle they often voice is, "How can I afford this insurance?"  Many do not have the retirement income necessary to pay the premiums for long-term care coverage.  Right now the government may provide long-term care to the impoverished through Medicaid, but this option is fading as legislation restricting qualification for the program becomes more prohibitive. 

Everyone is aware of the recent and rapid growth of reverse mortgages.  Part of this growth is due to the large "baby-boomer" generation aging into senior citizenship.  One of the most prevalent needs for reverse mortgage money is to pay the in-home care costs of elderly homeowners.  Although a reverse mortgage can pay for long-term care costs in the future, a more practical approach is to anticipate this risk and make plans to protect against it.  A reverse mortgage can be used in proactive planning and implementation as a funding tool for a long-term care insurance policy.  

A few thousand dollars of home equity expended annually now can pay for long-term care insurance and save a senior homeowner and family potentially hundreds of thousands of dollars in care costs later.  A small loan on a senior's home is almost inconsequential to the overall estate compared to the potential cost of long-term care when and if needed.  Nor does it disrupt the lifestyle of the senior homeowner.  Best of all, it will provide peace of mind in the knowledge that the senior will retain control of their care and relieve their family from many of the daunting, and sometimes overwhelming, obligations associated with a long illness. 

There may be no better use of a reverse mortgage than to purchase long-term care insurance.  If you have clients/prospects who are 62 years old or older, own their home, would qualify medically for LTCi and are interested in learning more about their options, find out how easy it can be for them to afford the long-term care insurance premiums. 

If you would like to see an illustration about how a long-term illness can affect the financial future of a younger senior homeowner, I have created a model that will calculate three scenarios, based upon the current financial status of a senior homeowner: 

1.) Using a reverse mortgage to fund LTCi
2.) Using a reverse mortgage to pay for care when needed
3.) Refusing to plan for a long-term illness

Please contact me, Stephen Lamoreaux, Reverse Mortgage Professional, at: 

Toll free (800) 562-6365x376 or Direct (203) 595-9610 or e-mail