Those who have engaged or wish to engage in reverse mortgages may have put the additional burdensome risk of forcing their heirs to sell the property you leave to them upon passing. There is mortgage protection which is a term insurance plan to help pay off the mortgage upon the passing of the homeowner who is in good health. However, it may not be actively offered, promoted and marketed. This term life insurance plan can help protect your spouse or children to pay off the mortgage and protects your children and heirs from losing the house or property upon passing, thereby preventing them from being forced to liquidate it during unfavorable market conditions.
The cost of such protection can come out of what you draw from your reverse mortgage without impacting your living standards.
Those who don’t have a reverse mortgage may be interested in this insurance as well, especially if you have mortgage debt and wish for your heirs to keep the property upon passing.
If you are interested in looking into ways to protect your children and heirs from the ill effects of real estate and reverse mortgage debt, please contact us for more details.