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Today’s reverse mortgage loans have built-in protections designed to make sure the loan is a sustainable solution for the borrower. In this article, we’ll explore what a life expectancy set-aside (LESA) is, how it helps a borrower to pay property charges, when the lender’s underwriter will require it, and why, in some situations, it may be advantageous for a reverse mortgage borrower to voluntarily opt for a LESA.

Loyal NAIFA-CA member Louis H. Brownstone, CLTC, proposes a new solution for long-term care insurance planning in a recent Broker World article. Brownstone is the owner of California Long Term Care Insurance. A NAIFA member since 2007, he is the Government Relations/APIC IFAPAC Chair for NAIFA-San Francisco Peninsula and a NAIFA Financial Security Advocate.

Congratulations, Louis. We're #NAIFAproud of your commitment and dedication to our industry.

Home Wealth Can Help Your Older-Adult Clients to Fight Inflation.  

These days, inflation is on the minds of most people — and it is of particular concern for seniors. With prices rising at the fastest pace in decades, many people who are in or nearing retirement have heightened fears they may outlive their savings.

The stage is set for home wealth, which has also been on the rise, to play an important role in helping retiree homeowners to support a more efficient retirement income strategy. As a financial professional, you want to give your clients the best chance at financial success, which is why it is imperative that the strategic use of home equity is part of any retirement-planning conversation.

While there are several different types of reverse mortgages, most reverse mortgage loans today are HECMs—the only reverse mortgages insured by the Federal Housing Administration (FHA). 

Many financial professionals now consider today’s HECMs to be an important and effective tool (when used within a comprehensive financial plan) to help improve retirement outcomes for their older-adult homeowner clients.

It’s easy to lose focus on interest rates when you’re helping your client search for a reverse mortgage loan.

After all, the interest rate won’t affect the monthly payment because they won’t have to make one (though they will need to pay taxes and insurance and maintain the home).

Reverse loans don’t require monthly payments, as the full balance comes due when the last borrower dies or leaves the home.

But reverse mortgage interest rates are still a big deal and should factor into your clients' borrowing decisions. The interest rate will make a huge difference when the balance comes due and your client or their heirs must decide what to do with the home.

Guaranteed income is the largest financial asset for most retirees, yet its role in a financial plan is generally quite minor, treated simply as a cash flow that can be used to fund the retirement liability.

According to insurance industry research group LIMRA annuity sales had their best quarter in nearly 10 years with 62.1 billion in 4th quarter 2018 sales, up 22% year over year. LTCI Partners show you 3 creative ways to use Annuities to fund extended care needs.

Caroll Golden speaks with Steve Kline and Michael Hedge of the NAIFA-National Government Relations staff about the Senior Protection Act.  They offer valuable insights into NAIFA’s political advocacy on the issue of senior financial protection and highlight what NAIFA is doing at the state and federal level on this critical issue.