The reverse mortgage is most often discussed in the context of single people who have no one to “leave” their house or apartment to. However, married couples also opt for a life annuity contract. How are the cash benefits then calculated? If one of the spouses dies, will the widower or widow continue to receive the same amount of payouts? Will the agreement still be valid in the event of the death of one of the spouses, or is it necessary to sign a new one and “recalculate” the amount of benefits again?
For several weeks now, there has been a growing discussion about the so-called 500+ for married couples, i.e., additional money for seniors with a long marriage life. Although the citizens’ petition on this matter is still pending, the money would support older people who have already raised their children and can boast a long marital life. According to the proposal, marriages that have raised at least two children could receive 500 PLN (after 50 years of marriage), 550 PLN (after sixty years of marriage), 600 PLN (after 60 years of marriage).
A reverse mortgage serves a similar function but long-term. It is commonly believed that mainly single people, who only have “one pension to distribute” in their home budget and these funds often do not suffice for all their needs. However, over 1/3 of our clients live in relationships and have “two pensions” at their disposal but live mainly in old, unmodernized houses requiring renovations, periodic inspections and, above all, heating, which in winter constitutes a significant financial burden – says Robert Majkowski, President of the DOM Mortgage Fund.
How much money can a married couple count on?
How are cash benefits calculated in the case of a couple opting for a life annuity contract? The amount of benefits depends on age, gender, and property value of the senior. Men receive higher benefits because, according to GUS statistics, they live shorter lives, which means that the potential number of installments to pay will be lower. The differences in the amount of benefits can be large. Let’s assume that a 75-year-old woman (and the value of her apartment will be 400,000 PLN) will receive approx. 860 PLN monthly for life. If it were to be a 75-year-old man (with an apartment of the same value), the amount of his benefits would already amount to 1066 PLN per month. The mortgage fund, when determining the amount of monthly payments for a marriage, always takes into account the person who will live longer. According to GUS statistics, it will be a woman. If the spouses entering into the contract are of different ages, the analysis and calculations will also consider the person whose projected lifespan is longer – says Robert Majkowski, President of the DOM Mortgage Fund.
One contract, but what if a spouse dies?
If a marriage signs a life annuity agreement, the spouses receive one, common sum of money (paid until their death), which they must divide. If one of the spouses dies, there is no possibility to conclude a new agreement or recalculate benefits. The contract will still be valid and the amount of the annuity will remain the same. If the wife dies first (and her projected lifespan was taken into account during calculations), the husband will receive the same annuity they received together (although as a lone man, he could receive several or several hundred zlotys more). It is worth adding that similar rules apply to couples and co-owners of property. If siblings of seniors are co-owners of an apartment or house, they will also conclude one common agreement and receive common cash benefits, calculated according to the same assumptions as in the case of marriage – summarizes Małgorzata Rosińska, Head of the Legal Department of the DOM Mortgage Fund.
Source: https://managerplus.pl/hipoteka-odwrocona-dla-malzenstwa-zasady-wyliczania-swiadczen-i-aspekty-prawne-45697
