There are many different reasons why one would consider a reverse mortgage. One is for healthcare expenses. Does it makes sense to take out a reverse mortgage for healthcare expenses? The answer really depends on the individual and their circumstances.
Unless it is absolutely necessary, yes you should. However, many seniors have completed a reverse mortgage and opted not to spend all the money. Having the money set aside specifically incase of an emergency can be a stress reliever.
We never know when an emergency will strike. Long term care insurance is often overlooked in our younger years, but as time goes on, more and more people wish they took advantage of the low rates years ago. If something happens, it is important to have the funds necessary to pay for these unforeseen circustances. Eating into your savings or retirement account should also be a last resort.
For those who do not wish to obtain a lump sum, a line of credit may be utilized. In this instance, you will have a line of credit to use when needed. Unless you are really cash-poor and unable to pay for critical medical expenses it is probably not the best idea to do a reverse mortgage for healthcare expenses.
Try to use other methods to pay for your healthcare expenses if possible. A reverse mortgage is a great solution if all others alternatives are tapped out. You should always speak to your heirs about the possibility of you doing the reverse mortgage. Involve them into the process so they are aware of the benefits and more often than not, they will be supportive for your decision.
Your retirement should be as stress-free as possible and a time to enjoy your life, not be worrying about bills and money issues. At the end of the day, the goal is to save as much as possible, invest into retirement accounts which are safe, and maintain as much home equity as possible. It is hard to do all 3 concurrently, but try hard to achieve this goal for financial freedom.