Laguna Hills, CA. (PRWEB) October 15, 2012
As an escalating percentage of America’s population continues to reach retirement years, the number of seniors who need long-term care continues to grow. According to the U.S Department of Health and Human Services, 70 percent of people age 65 or older will need long term care services at some point in their lifetime (1). The question facing many Americans now is how to afford that care. National Guardian Network (NGN), with subsidiaries including American Veterans Aid (AVA), a financial services company specializing in long-term care planning and estate planning, provides new and safe solutions for long-term care.
Long-term care consists of a variety of services that can include medical and non-medical care for people who have a chronic illness or disability – and it does not come cheap. Genworth.com provides the average costs that an elderly California resident may endure per year (2):
●Nursing Home – Private Room: $93,988
●Assisted Living Facility: $42,000
●Home Health Aide: $51,480
With these costs rapidly increasing each year, many individuals do not have the financial support they need, and are unaware of any solutions. When desperate and without care, people are forced to find fast, alternative ways to pay for long-term care. What they are now turning to for a solution may be more harmful than helpful, such as reverse mortgages (which allow borrowers to defer principal and interest payments on their existing home mortgage until they move).
According to a study from the MetLife Mature Market Institute (2), the average age of reverse mortgage borrowers is approximately 73; yet the average age of homeowners who completed reverse mortgage counseling between September and November 2010 was 71.5. The study found that of homeowners who are considering a reverse mortgage:
●46 percent are under age 70; and
●21 percent are ages 62 to 64, despite lower available loan limits that are available.
“Since more homeowners 62 and older are finding themselves financially strapped, they are finding ways to pay for their expenses,” said Glenn Pool, CEO of National Guardian Network. “While a reverse mortgage offers the funds to pay bills, it comes at a price.”
Pool cautions that reverse mortgages may offer a quick solution, but there are pitfalls that could cost borrowers their home:
●Becoming permanently housed in an assisted living facility, the home is no longer their primary residence, and banks will want reverse mortgage funds;
●If the equity is greater than the home’s value, the home will be forfeited to the lender;
●If the borrower buys a second home, then the house on which the reverse mortgage was obtained may no longer be considered the primary residence.
NGN helps customers learn about the potential pitfalls of reverse mortgages beforehand, and offers more beneficial ways to fund long-term care. The solutions being provided by NGN include long-term care crisis and asset protection planning, assisting individuals with long-term care strategies, and helping customers discover tax-efficient ways to pay for long-term care.
“It is smart to plan and think about long-term care before you need it or before a crisis occurs,” Pool said. “Planning ahead gives you time to learn about different options that aren’t just a quick fix.”
National Guardian Network offers a free one-hour consultation. To speak with NGN, please call 1-888-438-2073 or 1-949-269-8164.
About National Guardian Network (NGN):
As a subsidiary of American Veterans Aid(AVA), National Guardian Network (NGN) is an independent marketing organization (IMO) that serves as a wholesaler of insurance products. It deals directly with the consumer and works with insurance agents, registered investment advisors and insurance agencies. NGN provides guidance for long-term care strategies, and offers long-term care crisis and asset protection planning. The company specializes in annuities with long-term care coverage and government long-term care benefits, such as VA and Medi-Cal in California and Medicaid in all other states, and produces $52 million annually in annuity premiums. All advisors with NGN must undergo a background check in order to be appointed with an insurance carrier. A free one-hour consultation is available. For more information, visit http://www.americanveteransaid.com.
(1) National Clearinghouse for Long Term Care Information, U.S. Department of Health and Human Services: Planning for LTC. Date accessed, January 18, 2012.
(2) Changing Attitudes, Changing Motives. The MetLife Study of How Aging Homeowners Use Reverse Mortgages, March 2012, http://www.metlife.com/assets/cao/mmi/publications/studies/2012/studies/mmi-changing-attitudes-changing-motives.pdf