REVERSE MORTGAGE INFORMATION
Senior Adults Prepare For Natural Disasters
The recent ice storms, which left almost a million homes and businesses across the nation’s
midsection without power, were a harsh reminder that we all need to be prepared for a disaster.
This is especially true for senior adults who may require greater assistance and are less able to
handle a severe or prolonged hardship. To avoid getting caught unprepared, some seniors are
taking steps to ensure they are ready, such as establishing an emergency fund made possible with a reverse mortgage.
Every day lives are damaged and destroyed by disasters. According to the Centre for Research on
the Epidemiology of Disasters (CRED), there have been 195 natural disasters in the United States
since 2000. Natural disasters include droughts, earthquakes, floods, avalanches, landslides,
volcanoes, wave surges, wildfires, and wind storms (including tornadoes and hurricanes). In the
past seven years, the damage from these disasters has cost over 263 billion dollars and affected 7
million people.
CRED believes that global climate change will have an impact on the occurrence and magnitude
of disasters and increase human vulnerability, and emphasizes the need for improved
preparedness.
In a disaster, senior adults must deal with the added problem of transportation, replacing
medications and oxygen, restoring electricity for power-dependent medical and life-sustaining
devices, and communications with family and their support network.
Fortunately, there is a wealth of resources available for senior adults to prepare for a disaster.
• Homeland Security provides checklists, videos, and brochures to assist senior adults in
preparing for a disaster. Visit their website at www.ready.gov, or call them at
1-202-282-8000.
• American Red Cross provides “Disaster Preparedness for Seniors by Seniors” and
“Disaster Preparedness for People With Disabilities” publications, and you may purchase
an Emergency Preparedness Kit. Visit their website at www.redcross.org, or call them at
1-800 REDCROSS (1-800-733-2767) or 1-800-257-7575 (Espanol).
Senior homeowners have an additional resource available to them: a government-insured reverse
mortgage. A reverse mortgage can help seniors in three ways: (1) cover the cost of preparing for
a disaster, (2) establish an emergency fund, and (3) cover the cost of repairs and re-building their
lives after a disaster.
A reverse mortgage enables homeowners 62 and older to borrow against their home with no
repayment for as long as they live in their home. Credit and income are not used to qualify, and
the reverse mortgage does not affect Social Security and Medicare benefits.
Reverse mortgages provide the flexibility to receive funds in a lump sum, a line of credit, monthly
payments, or a combination of two or more of these options. This makes it possible to trim trees,
buy a back-up generator, stock up on supplies, assemble a disaster kit, and establish an emergency
fund before a disaster strikes. Then, if a disaster does strike, the line of credit can pay for repairs
and replace personal belongings.
Using a reverse mortgage to be ready for a disaster enables senior adults to have added security
and to maintain their independence in these extreme situations. There is tremendous satisfaction in knowing that we have helped our senior customers to be better able to cope with a disaster and to recover from it more quickly.” Of course, in our planning it’s important to remember our pets, who also suffer right along with us during a disaster.
midsection without power, were a harsh reminder that we all need to be prepared for a disaster.
This is especially true for senior adults who may require greater assistance and are less able to
handle a severe or prolonged hardship. To avoid getting caught unprepared, some seniors are
taking steps to ensure they are ready, such as establishing an emergency fund made possible with a reverse mortgage.
Every day lives are damaged and destroyed by disasters. According to the Centre for Research on
the Epidemiology of Disasters (CRED), there have been 195 natural disasters in the United States
since 2000. Natural disasters include droughts, earthquakes, floods, avalanches, landslides,
volcanoes, wave surges, wildfires, and wind storms (including tornadoes and hurricanes). In the
past seven years, the damage from these disasters has cost over 263 billion dollars and affected 7
million people.
CRED believes that global climate change will have an impact on the occurrence and magnitude
of disasters and increase human vulnerability, and emphasizes the need for improved
preparedness.
In a disaster, senior adults must deal with the added problem of transportation, replacing
medications and oxygen, restoring electricity for power-dependent medical and life-sustaining
devices, and communications with family and their support network.
Fortunately, there is a wealth of resources available for senior adults to prepare for a disaster.
• Homeland Security provides checklists, videos, and brochures to assist senior adults in
preparing for a disaster. Visit their website at www.ready.gov, or call them at
1-202-282-8000.
• American Red Cross provides “Disaster Preparedness for Seniors by Seniors” and
“Disaster Preparedness for People With Disabilities” publications, and you may purchase
an Emergency Preparedness Kit. Visit their website at www.redcross.org, or call them at
1-800 REDCROSS (1-800-733-2767) or 1-800-257-7575 (Espanol).
Senior homeowners have an additional resource available to them: a government-insured reverse
mortgage. A reverse mortgage can help seniors in three ways: (1) cover the cost of preparing for
a disaster, (2) establish an emergency fund, and (3) cover the cost of repairs and re-building their
lives after a disaster.
A reverse mortgage enables homeowners 62 and older to borrow against their home with no
repayment for as long as they live in their home. Credit and income are not used to qualify, and
the reverse mortgage does not affect Social Security and Medicare benefits.
Reverse mortgages provide the flexibility to receive funds in a lump sum, a line of credit, monthly
payments, or a combination of two or more of these options. This makes it possible to trim trees,
buy a back-up generator, stock up on supplies, assemble a disaster kit, and establish an emergency
fund before a disaster strikes. Then, if a disaster does strike, the line of credit can pay for repairs
and replace personal belongings.
Using a reverse mortgage to be ready for a disaster enables senior adults to have added security
and to maintain their independence in these extreme situations. There is tremendous satisfaction in knowing that we have helped our senior customers to be better able to cope with a disaster and to recover from it more quickly.” Of course, in our planning it’s important to remember our pets, who also suffer right along with us during a disaster.