Reverse Mortgage Strategy
Fund Long-Term Care
For South Dakota homeowners 62 and older who want to use home equity to protect against one of retirement's largest financial risks.
Long-term care is one of the most significant financial risks in retirement - and one of the least planned for. The cost of a private room in a South Dakota nursing facility can exceed $90,000 per year. In-home care, while less expensive, adds up quickly. And most health insurance, including Medicare, does not cover extended long-term care.
For South Dakota homeowners 62 and older with substantial home equity, a reverse mortgage can be a practical way to fund that care - without liquidating investments or depleting savings.
How home equity can fund long-term care
- Purchase long-term care insurance: use a lump sum or monthly proceeds to pay LTC insurance premiums, securing coverage before it is needed
- Fund a hybrid life/LTC policy: a single premium paid from reverse mortgage proceeds can fund a policy that provides both a death benefit and long-term care coverage
- Pay directly for in-home care: draw from a reverse mortgage line of credit to pay for home health aides, adult day programs, or other services that allow you to remain in your South Dakota home longer
- Create a care reserve: establish a growing line of credit now - even if care is not immediately needed - so funds are available and growing when they are
Using home equity for long-term care rather than liquidating investment accounts or life insurance can protect liquid assets and preserve the tax efficiency of retirement accounts. This kind of coordination works best alongside a financial advisor or elder-care attorney.
The aging-in-place benefit
For many South Dakota homeowners, the goal is not a nursing facility - it is staying in their own home as long as possible. Reverse mortgage proceeds can fund the modifications and in-home care that make aging in place realistic: grab bars, ramp installation, stair lifts, and professional home care services. Keeping someone in their home rather than a facility is almost always less expensive - and consistently preferred.
Who this fits
- Homeowners 62 or older who have not yet secured long-term care coverage
- Those who want to age in place and need funds to make that realistic
- Homeowners whose liquid assets are insufficient to self-insure against a long-term care event
- Those working with an elder-care attorney or financial planner on a care plan