Alternatives to a Life Loan
A Life Loan is expensive.
A typical home loan mortgage rate is about 4.5% compared to 6.7% for a Life Loan.
So if you need money, can your children lend it to you? It would make sense for them to remortgage their own home at 4.5% instead of you paying 6.7%.
You can pay the interest as it arises
One of the criticisms of the Life Loan is that
€100,000 @6.7% over 11 years with the interest rolled up amounts to €204,000!
There might be nothing left for the kids.
But if you or the kids pay the interest every year as it arises, then after 11 years, you will owe exactly €100,000!