In the pages of this magazine, we often talk about the various ways a reverse mortgage can be used to bolster one’s retirement income plan. But one specific application we had yet to address was the use of a HECM to fund long-term care.

Surveys reveal that an overwhelming 68 percent of Americans 65 and older will need some form of long-term care. But while the odds are high that one will encounter this need, many fail to plan for the expense. This is problematic, as the costs of long-term care can be astronomical—reaching into the hundreds of thousands of dollars—possibly wiping out an individual’s entire retirement savings. And Medicaid assistance, which many assume will help shoulder the cost, is not only hard to obtain, but can also limit the type and quality of care available.

For those who own their home and qualify, a reverse mortgage can be a smart solution. Not only can it allow you to take control of your care by self-funding the services you need, it can ensure that you are able to remain in your home. Funds from a reverse could support renovations to accommodate limited mobility, and pay for a home health aide to provide assistance with daily living activities. By allowing seniors to independently manage the cost of their own care and avoid moving to a facility or nursing home, this option could be a saving grace.