Who are the best long term care providers and reverse mortgage companies?

A fellow caregiver asked...

Who are the best long term care providers and reverse mortgage companies?

 

Expert Answer

Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their loved ones. A registered financial gerontologist, she speaks regularly on the topic of paying for long-term care and is a financial expert for Caring.com.

The best long term care insurance company for you is the one whose policy meets your needs. There are many highly rated carriers that offer long term care insurance, e.g. Genworth, John Hancock, Met Life, to name a few. While the financial strength of the company is important, the features and services offered are equally important.

The best way to learn about long term care is to find an independent agent who specializes in long term care insurance. He or she should represent several companies. Your agent should conduct a needs analysis to better understand your specific situation. After that, recommendations can be made and options presented for difference premium levels. Most reverse mortgages are FHA-insured HECM (Home Equity Conversion Mortgage) loans. The government regulates the interest rates and fees that can be charged. So you will find little variation between lenders' products.

As reverse mortgages gain popularity, more banks are participating. The financial stability of the lender is important if they are going to be servicing your loan. (Sometimes the loan is serviced by a company other than the bank who provided your loan.) You should feel comfortable with the broker who is representing the lender. Independent brokers can represent more than one lender, so they can help select the program that works best for you. There are also reverse mortgage "Advisors" who represent you, the borrower and can recommend the appropriate broker. In addition to government insured programs, many banks have proprietary products. Because these aren't insured, there is more variation between lenders. Again, an independent broker can help you navigate the maze of products and lenders.