If you are a senior citizen who is struggling financially, you may be surprised to learn that you can sell your life insurance policy or get a loan on your house that you will never have to repay. Reduce your expenses by contacting your utility suppliers and asking for a discount, applying for food stamps and asking your Medicaid office if you qualify to have your Medicare Part B premium paid for you.
Senior Community Service Employment Program
The Senior Community Service Employment Program (SCSEP) is funded through the Older Americans Act and serves workers aged 55 and older. Your total family income must be no more than 25 percent above the Federal Poverty Income Guidelines, which are set by the U.S. Department of Health and Human Services. Enrollees provide services to public and non-profit organizations such as daycare centers, government offices, hospitals and schools. SCSEP workers are paid the federal, state or local minimum wage, receiving whichever amount is greatest, and are employed for at least 20 hours weekly. If you participate in SCSEP, you will also receive on-the-job training, benefits, yearly physical exams and help with finding permanent employment.
Social Security
If you have been employed and meet the Social Security Administration's (SSA) guidelines, you can begin receiving Social Security retirement benefits as early as age 62. SSA determines your eligibility according to your yearly wages, assigning up to four credits per year. You will need at least 40 credits to qualify. If you have a work history and are disabled, you may qualify for disability benefits. At age 60 or older, you'll need at least 9 1/2 years of work history to qualify, and five years of that work must have been performed during a 10-year period ending with the onset of your disability.
Reverse Mortgage
The Federal Housing Authority (FHA) offers a loan known as a reverse mortgage, which is based on the equity in your home. If you are at least 62 years old and own your home, or have a small balance on your mortgage, you can tap into your equity to receive cash payments. The payments are made monthly, as a line of credit, or a combination of the two methods. You still will be responsible for paying your real estate taxes and homeowner's insurance but, even if you live long enough to receive payments that total more than your home's value, you'll be permitted to live there.
Life Settlement
If you are at least 70 years old and have a life insurance policy that has been in effect for two or more years, you may be a candidate for a life settlement. Banks and hedge funds are investing in individual life insurance polices and paying more than you could expect to receive by taking your policy's cash value. Even term policies that have no cash value are eligible for this process. Life settlement companies look for policies with a benefit of $500,000 or greater, held by people over 70 who are expected to live between 2 to 15 more years. A broker will negotiate your settlement and, if you accept the investor's offer, you sign a contract, transfer ownership of your policy and receive the money.
Energy Assistance
The Low Income Home Energy Assistance Program (LIHEAP) is financed through a federal appropriation and administered by individual states. Each state determines total household income limits for the program, but no state can use a limit that is less than 110 percent of the Federal Poverty Income Guidelines. Other eligibility factors can include the number of people in the household, the type of fuel used and the household's annual energy expense.
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