Using a Reverse Mortgage to Pay for Prescription Medications
Reverse mortgages can offer a financial solution for seniors for a multitude of needs. With many seniors living on fixed incomes, when their monthly expenses increase, they find themselves struggling to make ends meet. By accessing the equity in their homes, seniors 62 and older can receive payments from a reverse mortgage lender to help them pay their bills and remain in their homes. One popular use of reverse mortgage funds is paying for prescription drugs.
Rising prescription drug prices leave seniors struggling to make decisions on whether to pay for their medications or their utilities. In fact, many seniors self-restrict their medications to make them last longer. According to the U.S. Centers for Disease Control and Prevention, approximately 5% of adults 65 and older don’t take their prescriptions regularly so they can save money. As drug prices continue to increase, they become unaffordable for seniors on fixed incomes.
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More on Reverse Mortgages & Prescription Medication Costs
There are populations that aren’t fully prepared for retirement and are extremely vulnerable financially. For example, if a homemaker, we’ll call her Mary, lost her husband two decades before he retired, she mostly likely wouldn’t have received his pension, forcing her to live solely on Social Security benefits after she retired. Imagine if Mary originally received $765 per month from Social Security, after inflation and paying for multiple prescription medications, her monthly benefits would barely cover her prescriptions.
For seniors like Mary who are looking for funds to be able to afford their rising prescription drug costs, a reverse mortgage may be just the answer. Based on her home equity, age, and location, Mary could have received over $1,000 per month from her reverse mortgage loan. The extra income allows her to cover the costs of her prescriptions, pay her bills, allows her to save, and most importantly, gives her peace of mind.
No matter your income level or life circumstances, a reverse mortgage could provide a solution for rising prescription drug costs. To learn more about how a reverse mortgage may be right for you, speak with a Certified Reverse Mortgage Professional.
Learn more about how people are using home equity conversion mortgages for purchasing homes:
Please keep in mind that the reverse mortgage industry in constantly changing and some of the information contained on this site may not be current. Please ask a licensed reverse mortgage professional for up-to-date guidelines.