Lack of money can cause great financial hardship during old age, as there are many expenses, and limited sources of income, as there is very less work available for a older person. So getting a reverse mortgage can help the family access the funds they urgently require, to lead the lifestyle they are used to, and pay the daily expenses without any difficulty.
The family can choose to receive the reverse mortgage amount, either as a lumpsum or in monthly or regular instalments. However most home owners prefer to receive the reverse mortgage amount in monthly installments as many of the regular expenses like utility bills are periodic.
The lifespan of an individual depends to a very great extent on hereditary factors, and if family members have lived for a long period of time, a person is also likely to live for long. In these cases, it is highly recommended that the person opts for a reverse mortgage, to receive a regular income for the rest of his or her life, as the value of the home will also increase over a period of time. The money from the reverse mortgage will also help the family to pay for other expenses like medical expenses, repairs to the home, property taxes. So taking a reverse mortgage will ensure that the family is financially independent and does not have to depend on relatives, friends for their regular expenses.