For example, you may choose to take the loan against only 50 percent of the equity stake in your house. This would obviously cause a reduction in the size of your monthly check.

You may want to maintain some equity in your property, so you can bequeath a portion of it to your heirs if you are so inclined.

If property prices decline after you take out the loan, it will not affect the remainder of your estate. In such circumstances, the lending company bears the loss. This is similar to a traditional annuity in which the insurance company bears the loss of continuing annuity payments in the event that you live past your life expectancy.

You do need to exercise some caution before undertaking a reverse mortgage. Consult with a professional who can explain the full implications. If you decide to back out of the contract, the surrender charges can be very steep.

If they fit in with your temperament and lifestyle objectives, reverse mortgages can be an alternative tax-free means of increasing your monthly income during your retirement years.