March-April 2021

decisions that they have to make—and into stress lev- els—that have implications for their health,” says Ramsey Alwin, president and CEO of the National Council on Aging. “Families across the nation are facing challenges that make aging with dignity nearly impossible.” Alwin says that potential solutions include improving core federal programs, such as Medicare and Social Security, while also working with the private sector. Her organization has a website, mymedicarematters.org , that can help people explore and understand the various Medicare options but that also offers information on ways to finance a retirement that might include a reverse mortgage. “It is more important than ever that individuals have the best healthcare coverage in light of the pandemic—at the right price point,” Alwin says, adding that the website can help users “navigate what can be a complex and over- whelming process.” People turning 65 can choose original Medicare or a Medicare Advantage plan for their health insurance. However, neither of them covers the costs of extended long-term nursing home care or home health care. For example, depending on the location, in today’s dollars a semi-private room in a nursing home could cost in excess of $90,000, Smith says. “We don’t have to remind anyone how expensive long-term care is,” Smith says. “Even what seems to be a secure retirement plan could crash and burn without a backup plan for long-term care. Depending on circumstances, a backup plan could include long-term care insurance, a contingency fund or a reverse mortgage.” Fewer and fewer employers offer health insurance to retirees. Because of this, many people who want to retire before age 65 face the dilemma of having to pay for their health insurance. Although there are rules in place that guarantee retirees the ability to buy individual health insurance, depending on where they live, premiums can be in excess of $1,000 per month, plus the potential for out-of-pocket deductibles and co-insurance. “It isn’t inexpensive to retire before age 65 if you have to pay for health insurance,” Smith says. “So, I have a number of clients who are just going to continue to work, even though they’d rather be retired, because they can’t afford $800, $900, $1,000 or more per month for health insurance.” If someone still wants to retire before 65, he recom- mends that they factor in the cost of a health insurance plan that meets their needs, plus the potential for high deductibles, co-pays and other costs that could push total out-of-pocket costs much higher. Health insurance can become more costly if someone taps into long-term retirement assets to pay premiums. Smith reminds clients that the stock market is unpre- dictable. Selling investments to pay premiums when the Health Insurance continued on page 26 REVERSE MORTGAGE / MARCH-APR I L 2021 25