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Offset Loss of Pension From Death of Spouse
Offset Loss of Pension From Death of Spouse

Millions of married couples are living partially on pensions paid to one of them, which will stop when that person dies. The drop in income of the surviving spouse could have a major impact on that person’s standard of living – unless it is offset by another source of funds.

A HECM credit line can be used to offset an income drop resulting from termination of a pension following the death of a co-borrower. The line would be used to purchase a monthly tenure payment that would fill the gap. The earlier the credit line is established, the larger the tenure payment will be when the need arises.