With a reverse mortgage loan, there are a variety payment options (where the lender pays you) for you to choose from based on your needs.

Here are the main options:

Lump sum

An option available with either the Home Equity Conversion Mortgage (HECM), Home Keeper or Cash Account, the lump sum is a nice way to get paid if you have a large expense to cover.   With this option, it is up important that you budget your cash appropriately.  A better option would be the Line of Credit.

Line of Credit

Available with either HECM, Home Keeper or Cash Account, a line of credit account leaves it up to you to determine how much receive.  All it takes is a simple form to complete every time you would like to withdraw funds.

Monthly Cash Advance/Tenure

Available only with the HECM and Home Keeper, a monthly cash advance gives you the security of knowing that a check for the same amount will be coming to you every month.  The greatest benefit of this option is that the reverse mortgage lender will continue to pay you even if they exceed the value of the loan and will continue for as long as you stay in your home.

Combination

Just as the name says, a combination can be just about any variation of the options above.  For example, you can take a 50% lump sum on the reverse mortgage loan and take the difference as a line of credit.  The beauty of the combination option is that you can decide exactly what you receive based on your needs.