It is important for people who have retired, who feel they need more income, not to feel that society has no use for them. Often retired people have skills and abilities that are highly sought after, and will be compensated for these skills. The opportunities exist whether created by another company or by the individual. The home is often a retired person's larget and most valuable asset. Reverse mortgages allow individuals with significant equity in their homes to use it as a source of income.
Individuals receive either a lump sum or a series of payments and use their residence as collateral.
The principal and interest is repaid from the estate upon death or sale of the home. Reverse Mortgages are currently available to residents of British Columbia and Ontario. Reverse mortgages are quite complicated and are difficult for providers to price so great care must be taken when shopping for one. However, they can often be just what is required for a retired person who owns and lives in their home, to produce extra income to continue their lifestyle. In retirement the need for life insurance protection may diminish significantly for some, usually as a result of debts having been paid and former financial dependents grown, educated and employed.