Ask Our Experts
By: Source: AARP Bulletin Today Date Posted: 2003-10-23 10:55:41
The AARP Bulletin's Ask Our Experts column provides answers to important questions affecting older Americans. Read below for this month's column, or review our archive of previously published questions and answers sorted by topic. (Note: Recent news or changes to regulations may affect the guidance offered in this previously published column.)
Submit your own question to the Ask Our Experts column via our easy-to-use online form.
Q. I received an ad in the mail saying a reverse mortgage could give me extra income in my retirement. How do these mortgages work? And how can I learn more about them?
A reverse mortgage is a way to get money out of your home without having to leave it. It's a loan against the equity built up in your home that is repaid—with interest—when you die or leave or sell the property. Reverse mortgages are available only if you're a homeowner 62 or older and only on your main residence. Although some of these loans are offered by state or local governments, most are underwritten by mortgage companies. Some people find a reverse mortgage a good way to make their later years more comfortable. You should be aware, however, that such a loan can entail significant fees. AARP explains the subject in detail in a free booklet, "Home Made Money: A Consumer's Guide to Reverse Mortgages" (order #D15601). It's available online or by calling (800) 424-3410.—Expertise provided by Kenneth Scholen
Q. I recently had a mastectomy and was told by a friend that Medicare will cover the cost of a prosthesis. Is this true?
Yes, after a mastectomy Medicare Part B covers breast prostheses (including a surgical brassiere) with a doctor's prescription. Beneficiaries, however, are responsible for paying 20 percent of the Medicare-approved amount. For information, contact the Durable Medical Equipment Regional Carrier serving your area. To get that number, call (800) 633-4227 or visit the Medicare website.—Expertise provided by Craig Caplan
Q. My company has shifted more of its health care costs to me. Will that trend continue in 2003?
Yes. A study done by the Henry J. Kaiser Family Foundation suggests that many firms are likely to boost employee health care premiums in 2003.—Expertise provided by Susan Raetzman
Q. My wife and I are both retired and receive Social Security based on our work records. Will my wife's benefit increase if I die before she does?
That depends. If you die before your wife, she is entitled to one of two benefits: a widow's benefit or a benefit based on her own work. In such cases, Social Security pays a benefit equal to the higher amount of the two. Your wife would receive a benefit based on 100 percent of your benefit or her benefit, whichever is higher. The Social Security Administration provides a free booklet on survivors' benefits. It's available online. Or you can order it by calling (800) 772-1213 and asking for publication 05-10084.—Expertise provided by Laurel Beedon
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