A Promising Way to Secure your Future

It is evident that worries are bound to enter in one’s life right after their retirement. The only way to remove those worries is to be prepared. The equity release schemes can come highly useful to meet the post retirement financial crisis. The schemes are created after considering the needs of the retired people to help them financially.

An equity release generally helps a retired person with monetary benefits after releasing mortgage on his property. The biggest advantage of the equity release schemes is that the person doesn’t need to find another house to live in. The schemes allow him to stay at his property for the rest of his life.

The Equity Release Schemes

There are mainly two kinds of equity release plans, Lifetime Mortgage and Home Reversion Plan. This lifetime mortgage offers retired people steady monthly income in their retirement years. The retirees can either receive the money at a time or in monthly installments. The amount of money which a person will receive depends on the worth of his property. The amount of money generated by these schemes is non-taxable.

Home reversion plan is another equity release option which a retired person can consider. This scheme allows him to sell a part of his property. After the death of the person, the spouse can continue to live in the property. If both the owner dies, the insurance company will sell the house and get back its invested money. It is one of the most valuable equity release schemes and most affordable too.