According to the

National Nursing Home Study published by the AARP

in 1996, 48 percent of Americans 65 years of age

or older are expected to need skilled nursing

facility care at some point. Yet the average cost

nationwide of long-term care is almost $50,000

per year.

It is easy to see

how many seniors entering nursing homes quickly

deplete all their savings. After the savings are

gone, the cost of the care is often picked up by

the taxpayer through the Medicaid program.

"Long-term

care insurance can be an effective way to protect

savings built up over a lifetime," LaFalce

said. "Reverse mortgages allow seniors to

access the equity in their home to pay the

premium, with no monthly principal and interest

due on such loans. Using a reverse mortgage to

pay for long-term care insurance is a natural

fit."

The Federal Housing

Administration's reverse mortgage program enables

homeowners age 62 and older the opportunity to

turn their locked-up home equity into tax-free

income while maintaining ownership and requiring

no monthly repayment. Eligibility requirements

are quite simple and do not impose any standards

based on income, assets, credit or employment.

"Seniors

participate in the reverse mortgage program for a

variety of reasons," according to Jeffrey

Moulton of Wells Fargo Home Mortgage. "Some

choose to pay off their existing mortgages or

credit cards, some for home improvements, but

more and more are using the loan to pay for

long-term care plans."

reverse mortgage to long-term care insurance,

homeowners can protect their savings against the

potentially devastating expense of extended care.