Case Analysis Of The Reverse Mortgage Project Of Happy Life

As increasingly serious problem of aging,the gap of social pension gradually emerge.In the cases of becoming old before getting rich and a tremendous aging population base,if only relying on the fiscal spending as a source of income for the older,then it may only be able to maintain adequate food and clothing after deducting the high medical expenses.Even counting on the traditional family pension,because of the Family Planning policy and family structure of "4-2-1",there still be much difficulty.It is common practice of carrying out the Reverse Mortgage for the countries which cope with aging to supplement the income of the elderly living.However,due to the financial constraints and the traditional concept of imperfect system,Reverse Mortgage frequently has been "freezing" since it was introduced into China in 2003.As a result,finding out the specific issues of the project existing in the process is the key to keep the project ongoing.The core of this paper is the “Reverse Mortgage project of Happy Life Insurance” which is the only “Housing Endowment” product approved by Insurance Regulatory Commission,in the view of the borrower,focusing on the aspects of analyzing the cost rate?the lending rate and the deferred annuity and summarizing the reasons why these problems exsit.Then,it is recommended to look upon the project as the "welfare-type" life insurance product initially.Besides,the insurance company had better to give out the benefit to the borrowers in order to increase the enthusiastic of participation.At the same time,the government should enact the preferential policies as soon as possible to attract more institutions to take part in the process of the project in order to reduce the pressure on the pension of an aging society.