If I am understanding Dagger accurately, he is incorrect. The payment for your home is either an annuitization of the current value of your home, or some portion of it, over your life expectancy; or a lump sum payment based on that annuity. In either case, you never surrender your home prior to your death.
He is somewhat correct in that the value of your home upon which the loan was based is surrendered upon your passing. If the entire home value is mortgaged, which is usually not the case, the bank then owns your home unless your heirs wish to finance it. If only a portion of the home's value is mortgaged, that portion must be bought back from the bank in order for heirs to retain the home. Otherwise, the home remaining home value is liquidated as part of your estate.
Added: A reverse mortgage is no more of a "rip-off" than any other financial strategy. Its appropriateness is based on one's specific scenario. For some, albeit a minority, there is no better solution available.