Reverse mortgages can actually be a great thing for people.
I also know of the ability to buy people’s life insurance policies. You aughta hear Ed McMahon’s wife talk about it. They were broke, and he was not likely to live more than a few years.
So they have an existing multi-million dollar policy and a company pays them (Ed and his wife) a part of the face value to be the beneficiary. They then make all the payments to keep the policy in force and when he dies, they get the money. It is a real win-win.
It is good for both sides of the situation. The only ones it may hurt are the previous beneficiaries.
I think reverse mortgages can actually be a pretty good thing.
Maybe reverse mortgages are ok for some. I’m not sure! They don’t make a lot of sense to me.
BTW: Fred has a new book...
“Teaching the Pig to Dance”
They sure as hell can be. My Mom made out like a bandit!! With the amount she got, she could buy back her house for cash, and have a bundle left over!!
I guess the answer for some is to sell the property and move into a old folks home.
Thank you RobRoy, for setting this thread straight.
There is an awful lot of ignorance on this thread.
Darn tootin! I am so hurt that Ed didn't leave me anything. Well he COULD have!
Serious now, it was his money while he lived, he did right for himself, as is right and proper. Beneficiaries (and particularly prospective beneficiaries, which is what they really are) should not be confused with creditors.
I agree but we might as well put on our flame retardent suits.
Looks to me like the only possible losers would be the "heirs". Waaaah, mom and pop spent my inheritance.
I work with a company that is occasionally involved in selling of inforce, often older, life insurance policies. We recently had a very heartbreaking situation wherein a policy with a $220,000 death benefit was sold for $20,000 due to the owners of the policy were extremely hard up for cash. The day after the deal was done and the required waiting period was over, the person died. So they had gotten $20,000 instead of $220,000 from the policy. True, he could have lived for several more years... but it is not always a good deal, and there might be situations in which it is best to try to sell it to a relative or associate who has some goodwill for the family instead of done as totally a business deal.