Tom Basey from Basey Insurance discussed the importance of a long-term care policy to protect one's assets and legacy. He explained that two out of three people over 65 are expected to need some form of long-term care, typically lasting for three years. He suggested that people consider getting a policy in their 40s or 50s, as it gets more expensive the longer you wait. He also discussed the different types of policies, the limitations of Medicare and Medicaid, and the potential of using a reverse mortgage to cover long-term care costs. He encouraged people to contact him or visit his website to learn more about their options.
- Consider getting a long-term care policy in your 40s or 50s.
- Research different types of policies, such as term, hybrid, and life insurance policies, with a long-term care rider.
- Contact Tom Basey or visit his website to learn more about your options.
- Connect with Tom on social media.
- Research the limitations of Medicare and Medicaid.
- Consider using a reverse mortgage to cover long-term care costs.
- Share, like, and subscribe to the Dead America Podcast.
Long-Term Care Tom Basey
[00:00:00] Tom Basey: There are different carriers and so I'm, I'm fortunate because I'm appointed with some of these, so sometimes I'll actually pull it up online. If we were sitting at your house right now, I could pull up for one or more carriers. For one thing, I ideally shopped at some to get a feel for it. Uh, but I would pull up, and, and a lot of the big carriers that you see on TV that, uh, that are advertised, for example, life insurance, I didn't even know this, and, or some of them that are even property and casualties, some of them have these solutions.
[00:00:22] But I, I'll pull this up and there's typical demographic things, your, your zip code, uh, your age, your, sometimes they wanna know what state you were born, where you were born there, the smoking status, that kind of stuff. And then there will be some underwriting questions about, have you been in the hospital? Have you had a diagnosis of any diseases? So there are, there's traditional underwriting. Sometimes though, I mean, literally it, it's, there's a lot of different options. The other thing I would offer is sometimes I get just basic demographic data and I can call kind of these clearing houses and they will shop multiple carriers for me to kind of find it.
[00:00:53] And then once I found the, the right, we can get together and, uh, refine the, refine the policy for you. But there's, you know, I, you asked about the underwriting, and that's the thing, there's a series of underwriting questions having to do, it's basically your health, your, your lifestyle and health things, but it's not excessive or exorbitant. Typically, you're gonna sign something that will allow them to check your medical records cause they wanna know, right? They wanna make sure.
[00:01:22] Ed Watters: To overcome, you must educate. Educate not only yourself, but educate anyone seeking to learn. We are all Dead America, we can all learn something. To learn, we must challenge what we already understand, the way we do that is through conversation. Sometimes we have conversations with others, however, some of the best conversations happen with ourself. Reach out and challenge yourself; let's dive in and learn something right now.
[00:02:13] Today we are speaking with a returning guest, Tom Basey from Basey Insurance. We're going speak about long-term care. Tom, could you please introduce yourself, let people know just a little more about you, please?
[00:02:27] Tom Basey: Certainly. Number one, thanks Ed, for having me on again. It's a pleasure visiting with you. My name is Tom Basey with Basey Insurance. I'm an independent insurance broker, so I'm not captive with any carrier. I'm appointed with a lot of different carriers, so what I like to do is help people find solutions that work for them. Yes, I'm looking forward to talking about long-term care. For a little bit of background, my previous background, I worked in corporate America for almost 30 years, I was an engineer and a project manager. But several years ago I made a transition and so now I offer these, uh, you know, I don't do all engines, I don't protect your car and home with bundles. I don't do any property and casualty, I just do some, uh, health and life type solutions. But that's me in a nutshell.
[00:03:06] Ed Watters: Yeah. You know, looking into long-term care, this is really scary. You can lose everything because of getting sick and needing assistance in your elderly, or whenever you need this. Uh, what is the best way to, or let's reword that, how should one navigate the long-term care system because it's very tricky, Tom.
[00:03:38] Tom Basey: It is, but, so let's, let's talk about a couple things. Number one, I think you should understand what long-term care is, and we can talk about that. Then to your point, there are multiple different options to address that. And then depending on where you are, actually, here's one of the things, not unlike, it's very analogous to a life insurance policy that is, hey, you're like, you want life insurance, well, let's figure out what you need, right? How much coverage do you need? How, you know, and so, so I think it's similar. So I think people feel relatively comfortable with life insurance, they understand their, actually, not everyone understands the different types, be it term or whole life, but it's kind of like that.
[00:04:09] There's different ways, there's different types of policies you can get. But I think the starting point might be, what do you think you're gonna need? So let me throw out a couple of stats for you. So number one, depending on where you look and you know, stats can vary all the time, but I can say two out of three people, or maybe 75% of people who turn 65 and above are expected to need some long-term care.
[00:04:28] So in other words, to your point, I hate to be scary about it, that's saying ideally if we prepare or we, it's not as scary. But it is likely someone's gonna need some long-term care. Now let me share a little bit more with you. Um, statistically I believe I can say this, in the U.S. guys use, uh, uh, just under three years on average of long-term care.
[00:04:46] Now, the bad side of that is that number, number one, that's an average right there. There are pros and cons that, the good news is, well, that doesn't sound like much. I guess the bad news is, statistically that sounds like maybe you don't last much longer. Now there's certainly, there'll be some that get out of it.
[00:04:57] My point is, if you're gonna try to size this, you, seems like, if the average of that, maybe you wanna go a little bit more, right? If the average is 63, depending on maybe the longevity in your, in your family lineage, ladies actually last another year or so longer, ladies expect to last more. Now again, similar in life insurance,
[00:05:12] well, they're liable to cost a bit more, actually. That's counter to because they're gonna cost the insurance company more. So as a general rule, male or female, think about how much you'd like to be covered. And to your point, that's the thing, ideally you've got some kind of savings that you've built over time for retirement.
[00:05:26] The problem is if you need long-term care, and we'll talk about more about what it is, oh crap, when you do that, it is expensive to do that. So with these policies, not like a life insurance policy, you can decide how much you want per month. For example, you can say, gimme a lump sum, like a life insurance policy
[00:05:41] or you can say, I'd like this benefit for X number of years. So I'm just gonna throw myself out there, I have one on myself. And I have four years worth of coverage available to me. And, uh, I'm gonna go ahead and throw this number out, I think this is right. Uh, and this thing, it varies state to state, I think I did mine for $5,000 a month.
[00:05:56] So in theory, if I need it, and we don't know if I'll need it or not, but if, if it kicks in, we'll talk more about what long-term care is and how you qualify, if it kicks in, I think that I have four years that it'll pay, uh, $5,000 a month. Now year five, if I survive that, it's done, it's over. So then I'm gonna be eating the savings or what?
[00:06:12] But that's just kind of an example. So instead of a life insurance, well, I have added life insurance to it. My point is, Tom has a long-term care policy himself that will provide four years of coverage at a given benefit amount. And I'll, and I'll tell you this, I think that cost me about a hundred dollars a month. But also like life insurance, the sooner you buy it, the younger you are, the cheaper it's gonna cost. It gets really expensive the longer you wait. So I'll stop right there.
[00:06:31] Ed Watters: So, so what age should you think about having long-term insurance?
[00:06:38] Tom Basey: Well, again, I, I'll use the life insurance and l'll say it kind of depends on the individual. The, the younger you address this, the better off you are. Um, you know, some experts will tell you in your fifties and clearly that's, that's, you can't argue for that.
[00:06:52] Actually, I think you should consider it before that, forties maybe. I don't know what you need, in your thirties if you can afford it, it won't cost that much. So maybe it's something to think about. But I mean, clearly in the forties or fifties where you really ought to consider it. Once you start getting into the sixties, it's gonna be more expensive. That's the thing, it gets real expensive if you wait. So I'm gonna, I'm gonna, for your, for the, your audience, I'm gonna say in your forties.
[00:07:12] Ed Watters: Yeah, because I've heard different stories on that. Some say you should wait right up till the point, but you can lock in savings if you're actually doing it at a younger age.
[00:07:28] Tom Basey: Exactly.
[00:07:28] Ed Watters: So how, how do those premiums work on long-term care? Uh, do you pay until a certain amount? Or is it until you die, you pay a premium on this?
[00:07:43] Tom Basey: Well, great question. I don't know that we have time to get into the entirety of this, but it's a great question. So let me answer that in a terse fashion. Number one, as, as I hinted out, even like in life insurance, there's different forms.
[00:07:53] So in other words, a term policy is the most simplest form of life insurance where you're gonna pay 10 years, 20 years, or 30 years. And if you die during that time, then your beneficiary will get whatever the monies you got, right? That's the simplest one, but there are more complex versions of life insurance. Similarly for long-term care.
[00:08:08] So my point is, you can get a long-term care specific policy and you actually have some payment options. So you can say it's gonna be a, a seven year pay or to age 65, so there you can dial it in similarly. And if you need long-term care, it'll pay for it. Conversely, you actually can do some other stuff, you can actually get
[00:08:25] a life insurance policy. And so it'll have the life insurance, uh, scenarios or variables as well. And you can have a long-term care rider, so you, is it, of course it costs more to have that on them. But you can do that, so you can kind of, it's a combo burrito, if you will. So you're covering both life insurance in it.
[00:08:39] And then there's even the other solutions, they call them hybrid. So they're kind of in between the two. Because one thing I would remark to you, and, and not one of these products is the obvious one for everybody. You just gotta understand how they work, understand everybody's system or a scenario. But my point is, in a hybrid system, you can kind of get the best of both worlds and it'll be flexible.
[00:08:59] And so you, so they're, they're flexible like on how much you contribute, how much you pay, they're, they're very flexible solutions. I don't wanna, I don't wanna get off into the woods, but the good news is you can decide what you want to pay per month, like a life insurance policy, or you can decide, how much do you need in a lump sum or a, uh, maybe a monthly benefit.
[00:09:16] I kind of lean towards a monthly benefit cause you can, you can go online and figure out in your state and, or in your metropolitan area, or rural area, you can find out what the average costs are. Now the other thing you talked about, here's the thing, there's actually options in these things cause they're, at least some of these solutions, Well, I'm not, I'm in my fifties,
[00:09:36] I'm not gonna need this for 20, 30 years. Well, what is, if, like I said, I think mine is for, $5,000 a month, is that gonna be enough in 20 or 30 years? So actually there's even options where you can put a growth on there like a, a, uh, an inflation rider on there to grow. Again, that will cost more, so that's the thing.
[00:09:53] All these things can cost more, but we can size them for you. The closer, the closer, if you're only 10 years away, maybe you're not worried about inflation. If you're 20 or [00:10:00] 30 years out, maybe you should consider inflation. You can even dial that in, you can say, give me a 1%, 2%, 3% inflation rate growth. So my message is, there are different products to address this and there are different ways to do it. I'll stop there, but I would like to, I'd like to consider the prospect of defining a little bit about what long-term care is and how one, uh, qualifies.
[00:10:20] Ed Watters: Yeah. That, that's probably really, uh, wise to do that because it's really tricky. There's different aspects to it. Would you please define long-term care and the different aspects of long-term care?
[00:10:38] Tom Basey: So there's a spectrum of care available that we won't talk about at length. But it's everything from just having somebody come into a home, to maybe some independent living, assisted living. There's all different ways that, that depends on the needs of the individual and that's the thing, the need is the most important one.
[00:10:54] Long-term care is when you're no longer able to do certain things, and I'll get specific industry definition on it, then you need some help. Sometimes it can be cognitive, so if somebody can't be left alone, well suddenly they're in need of long-term care. Or if they can't do, often it's two of the six activities of daily living.
[00:11:11] Which are dressing and bathing, toileting, transferring, which means getting from the bed to a wheelchair or wheelchair to the bed, uh, continence if they can't maintain continence, uh, and, and eating. So if anybody can't do 2 of those 6, then they will qualify. So either for cognitive or for whatever reason and, and unfortunately, debilitating diseases are the very reasons why someone gets to that point.
[00:11:31] But if you get to that point, then you qualify for long-term care. And you're, and if you have one of these protections, then your benefits will kick in. And some of the, that's the thing, you can, many people would prefer to stay at home, uh, and so this allows you to do this. And depending on what kind of policy you get, often it's gonna pay, it's, it's, it's an indemnity.
[00:11:51] It'll pay you, it doesn't necessarily pay them. You could arrange, you could pay them. But my point is, it allows you the flexibility to pick where you're gonna receive that care. But so, long-term care is that when you can no longer do those, or you need to be, you need to, uh, have someone around you. And, and these policies pay for that once that criteria is met.
[00:12:08] Ed Watters: So that was one of my questions, about, can you have that care at home and be eligible for the same
[00:12:18] Tom Basey: You can
[00:12:18] Ed Watters: benefits?
[00:12:19] Tom Basey: And let me
[00:12:20] Ed Watters: That's
[00:12:20] Tom Basey: remark about that a little bit.
[00:12:21] Ed Watters: kind of cool.
[00:12:21] Tom Basey: So number one,
[00:12:22] Ed Watters: Sure.
[00:12:22] Tom Basey: The thing is some people think this is taken care of by other things, it's not. For example, one of the classic things people think of is, Medicare. No, Medicare is really health related. And so actually Medicare will pay for a nurse to come in and, and address a wound for you or something like that. But they're not gonna, they're not paying this person to come in and, and cook meals, or feed you, or help you get to the. That, that's out, that's outta scope of Medicare.
[00:12:42] So many people make the mistake and they think they're covered. Typically, you're not covered unless you have one of these policies. Um, I wanna make a point here, that you said that, uh, the other thing I would remark is, actually, I believe I can say this, I think Washington is the first state and there are other states that are looking
[00:12:57] to start mandating that people address this in one form or another. That's an interesting scenario. So check with your state over time because the government's starting to recognize the need for this. And so sometime like, I think I can say this for Washington State, I think I can say they've implemented something so that maybe through your employer or you, they're gonna say, we're gonna provide a state level one.
[00:13:16] You can go and do one on your own if you prefer, but if you don't, they're gonna have you do something. No, it's not unlike retirement. They're kind of saying it's imperative you address this one way or the other. But you may, you asked, you asked a great question I wanna, I want to answer it correctly here. Let's see,
[00:13:28] so we talked about, um, what it is, how to qualify for it. Oh, and, and then, uh, and that's the thing, you said, can you get it at home? Unfortunately, statistically there's a daughter, or a daughter-in-law, or a wife, or some family member that ends up providing in-house care and that's, and so they're gonna lose their, their income.
[00:13:49] So depending on your point of view, this is kind of income protection as well. But, so yes, you can get one of these policies and you can pay whoever that person is that's gonna provide care. So that's the beauty of these policies, it'll, it gives you the flexibility to do that. So, because if you do that, if you're, you have your son, your, your daughter, whoever it is gonna
[00:14:05] take care of you, they're gonna potentially lose, there's some bad statistics on that. If it, from being a care provider is actually a very negative impact on your health long term. And so, uh, yes, you can, it allows you to do it, or if you've got the policy in place, you can go and live in an assisted living nursing home and it, it pays for it.
[00:14:21] So either way, it's kind of, it protects multiple people, right? It protects the, the legacy, the retirement savings of the person perhaps, and then it protects their care, their loved ones who might have to provide care by having that financial safety net.
[00:14:35] Ed Watters: Yeah. Another thing I wanted to ask about is, Medicare will pay for some things, but only for so long.
[00:14:49] Tom Basey: Correct.
[00:14:49] Ed Watters: Uh, I, what is it? A hundred days? And then on the hundred and first day, your coverage ends.
[00:14:58] Tom Basey: It depends on which .
[00:14:59] Ed Watters: What is that about?
[00:15:01] Tom Basey: Well, I don't know that I can get into the specifics on how many days and which one it is. But what I would offer is, long-term care does, for example, there's actually been, what, what Medicare will do is some skilled nursing, so it'll pay for that. So that, some people think of that, skilled nursing is when you're in there, it'll pay for some of that
[00:15:17] and it'll go to zero. And then actually in-home care or long-term care, sometimes it'll pay for some of that, but only so much. Sometimes, it depends on the scenario, 90 days or 180 days actually, I believe. So I, I'm ill prepared to tell you the specifics on exactly which one it will do, but
[00:15:30] Ed Watters: Right.
[00:15:30] Tom Basey: my point is, it's simply you can't rely on it for multi-year long care. When, and again, that's when care means somebody helping you get dressed, somebody helping you get out of bed, physical things,
[00:15:42] Ed Watters: Right.
[00:15:42] Tom Basey: cleaning.
[00:15:44] Ed Watters: So, so Tom, when you're underwriting these policies, what are some of the specifics that you have to get into with the people to really underwrite the policy for them?
[00:15:57] Tom Basey: You know, what I would offer is this, there are different carriers and so I'm, I'm fortunate because I'm appointed with some of these, so sometimes I'll actually pull it up online. If we were sitting at your house right now, I could pull up for one or more carriers. For one thing, I ideally shopped at some to get a feel for it.
[00:16:11] Uh, but I would pull up, and, and a lot of the big carriers that you see on TV, uh, that are advertised, for example, life insurances, I didn't even know, and, or some of them that are even property and casualties, some of them have these solutions. But I, I'll pull this up, and there's typical demographic things, your, your zip code, uh, your age, your, sometimes they wanna know what state you were born, where you were born there, the smoking status, that kind of stuff.
[00:16:33] And then there will be some underwriting questions about, have you been in the hospital? Have you had a diagnosis of any diseases? So there are, there's traditional underwriting. Sometimes though, I mean, literally it, it's, there's a lot of different options. The other thing I would offer is, sometimes I get just basic demographic data and I can call kind of these clearing houses and they will shop multiple carriers for me to kind of find it.
[00:16:52] And then once I found the, the right, we can get together and, uh, refine the, refine the policy for you. But there's, you know, I, you asked about the underwriting, and that's the thing, there's a series of underwriting questions having to do, it's basically your health, your, your lifestyle and health things, but it's not excessive or exorbitant. Typically, you're gonna sign something that will allow them to check your medical records cause they wanna know, right? They wanna make sure. But, uh, it's not a life insurance policy.
[00:17:19] Ed Watters: Does preexisting conditions affect the premium amount
[00:17:23] Tom Basey: Oh yeah.
[00:17:24] Ed Watters: you would pay?
[00:17:24] Tom Basey: Yeah, they can. Yeah.
[00:17:26] Ed Watters: It does.
[00:17:27] Tom Basey: And, or can
[00:17:27] Ed Watters: Interesting.
[00:17:28] Tom Basey: let me put it that way. And in fact, here, let me clarify, sometimes just your age. In other words, recently one of my siblings, I was shopping at my, so I have a sibling. He was, uh, he's just over 70, his wife was significantly under 70 though, it was relatively easy to find a policy for her,
[00:17:42] some of them wouldn't even insure him. Like, and when I go into the tool, I, if I type in that date of birth, like no, we got nothing for that guy. So I had to call and kind of shop for his and it just gets expensive. But my, so my point is age. So any, anything will affect the premium, pre-existing, not, not saying it won't necessarily, uh, deny you, there may be certain dread diseases or something. If you've already got a diagnosis, maybe you can't get one anymore, right? But, but yes, all of that affects, all that affects how much you're gonna pay.
[00:18:06] Ed Watters: So I'm, I'm 57 now and I'm getting really close to that 60. Uh, I should really be considering shopping for one of these for me and my wife.
[00:18:17] Tom Basey: Yeah.
[00:18:17] Ed Watters: And uh, now if it's me and my wife, do they give like a discount for both of us shopping together?
[00:18:27] Tom Basey: Yes. And, or you can even kind of do a combo sometimes. You can actually kind of buy a, a pooled amount of, of, uh, of years. So yes, it is available. So the, and so I'm, you know, you and I are having this conversation, I'm like, oh, we need to talk further. So yes, after, after the podcast, let's, let's, uh, set up a time and let me just generate, I'll generate
[00:18:43] some costs so you can at least look at it. And that's another thing I would like to remark, what anybody should do is get with a, uh, licensed professional. Often what I find is they have to be a licensed professional, they, they, these carriers won't appoint someone to represent them unless they're licensed in the state.
[00:18:56] But you, yeah, let, let me shoot some, uh, numbers for you and show the pricing on it and look across multiple carriers. But yes, say if you're in the age demographic, uh, and, and so I'll tell you, I, I, I, now, of course I don't live in the same zip code as you, but I bought mine, I think I was 55 and I think my wife was 53, and I cost a $100 dollars a month and she cost a $160 a month. She's two years younger than me, but that's, what they think statistically, they think she's gonna last longer, you know, and so they did that way.
[00:19:21] Ed Watters: Yeah.
[00:19:21] Tom Basey: I would encourage you to shop, Ed.
[00:19:23] Ed Watters: Yeah.
[00:19:23] Tom Basey: And the other thing I would encourage you to do is look and see how much it costs. So there'll, what you can, you can use, uh, search engines to find out cost of care and look at it in your zip code to get a feel for it. Uh, you know, and I think maybe if, if you and your wife vary on your longevity and your genetics, maybe you say, I, I only want three years, dear, you've gotta get six, everyone in your family, you know, or whatever. Just decide on that and let's just shop that and see what the pricing is, that's what I do for everybody.
[00:19:48] Ed Watters: Yeah, I would be interested in doing that. Uh, I was very surprised to hear that 70% of people turning 65 will need [00:20:00] some sort of long-term care and, and that's according to the Medicare, uh, people at CMS. How, how many people have to rely on Medicaid for something like this and what is the difference if they have to?
[00:20:24] Tom Basey: Well, that's a great question. So Medicaid will approximately make this available to you, but one of the things that people don't like is you don't get a choice then. So if you rely on Medicaid, potentially this is gonna, and let's be clear, Medicaid is for folks who have very limited resources to even qualify. But if someone qualifies for that,
[00:20:40] the good news is this will potentially be addressed for them. The bad news is they may not be able to choose a facility. And that really, often what happens is, at a given facility, there's a number of beds allocated for that. And so let's just say there's five to whatever the number is, 10, 10 different, uh, facilities that might be able to provide this for someone in your area.
[00:20:58] And if, if five of those, five of the 10 are already full and then the other five, there's two or three of those, uh, don't, their, their beds, their Medicaid level beds are full, then you might be pushing, your choices are very limited. So the good news is that it will potentially, uh, address that for you, bad news is, there's not a lot of choice. So it's, it's, it's slim pickings to do that, but there's a potential where someone would be okay with Medicaid. It just can be tough.
[00:21:22] Ed Watters: Yeah. Well, you don't wanna rely on the toughness, you wanna actually try to have that cushion at the end of life. And many of us, we really think about it way too late.
[00:21:37] Tom Basey: Yeah.
[00:21:38] Ed Watters: So, yeah. I encourage people to shop for insurance. I, I was just blown away and devastated when I actually found out about you need a long-term care policy to actually address these things that will not be covered. And, you know, I'm, I'm owning my own property, all of that. I, I really need to think about how long. I need this coverage for so my property is actually in an estate instead of somebody taking it.
[00:22:20] Tom Basey: Yeah.
[00:22:20] Ed Watters: And, and that's what happens in the end if you don't plan properly or if you're not a millionaire and can't just pay for the things that you need. They'll take everything that you have in the end. And what I found out is it doesn't matter if, uh, your wife lasts after you or not, they're gonna attach everything before she dies anyway. So I, I found that kind of harsh, but that's the reality of the matter.
[00:22:59] Tom Basey: Well, Ed, but I, what I would like, what, I like what you're saying is if everybody that's married is to consider you're not gonna die on the same day statistically, you might, right? That would be very romantic, I guess. But in other words, you gotta take care of each other and you want, you don't want that person to suffer further once you pass away.
[00:23:12] We're all gonna pass away one day, but you'd like them to be comfortable. And so that's the thing, insurance ideally helps you sleep better at night, not keep you up at night. So that's, you try to size it so that it's comfortable with you, you don't want too big a premium that, that, that's a problem for you. But you want a big enough premium that the benefits, enough that it makes you feel better about it.
[00:23:30] You know, I mentioned, me and my wife are at a 100, 160, my older siblings who are over 10 years older than me, their associated price is gonna be like 800, a 1000 bucks a month. So it's just, there's a, there's a curve, so the younger you start it, yeah, it's significant. So the younger you start, the better off you are as far as pricing on the premium.
[00:23:48] Ed Watters: Yeah, is, is there anything important that people should know about Medicare insurance and long-term care
[00:23:59] Tom Basey: Well, I
[00:24:00] Ed Watters: that we haven't covered?
[00:24:01] Tom Basey: That we haven't covered, I think the message is, you know, there's some analogies, hmm, let me think about it. Well, from a Medicare standpoint, I would remark, it is a similar discussion. You gotta decide if you want a Medicare Advantage plan, or Medicare supplement, or drug plan. Sit down with a licensed professional, have them shop different carriers in your area. Look at your medication, doctors, and pick what you like best. Similarly in long-term care, let them show you some things and ideally they can show you different carriers and different things, long-term care, depending on what you are,
[00:24:30] for example, if you've got plenty of life insurance, maybe a long-term care specific policy is better for you. It'll be the more cost effective way to address this problem. Or conversely, and if you, if you're, if you're a little short on life insurance, maybe you combo these things up and you get a life insurance policy with a long-term care rider, it's an opportunity to fix that. So there's just, it, there's, there's, I call it tailoring. So I think the important thing is to visit with somebody and, uh, and consider your options and understand them and then select what you and or your partner like.
[00:24:59] Ed Watters: Now, uh, one more thing before I let you go, Tom, I heard that another way to address this would be like a reverse mortgage.
[00:25:11] Tom Basey: Uh, that is not in my area , but I can, I can see how that would be the case, great point. I have, I have, I have been networked with licensed professionals in, in mortgage that could say that. So I think to your point though, that's a way, that's a financial vehicle, so you can take it out, out of your, you can take the value out of your home, the financial value.
[00:25:28] Kinda like a mortgage, you get this, this, uh, annuity or a payment come out of this. so I think you're right, too. I personally don't do those solutions, but I guess to your point, that is an option. But I, but I think that's the thing right there, in other words, I perceive the solutions that I'm talking about are, so you don't have to do that.
[00:25:42] In other words, in the, ideally you can leave the home, the property, the 401k, whatever you got, ideally, you don't have to have that consumed by your long-term care needs if you have one of these policies in place. Otherwise, I guess you could do that, that mortgage, yeah, the reverse mortgage and get the, uh, equity out of your home. That's a good point.
[00:26:00] Ed Watters: Yeah.
[00:26:01] Tom Basey: I did not plan
[00:26:01] Ed Watters: I, I just kind of, uh, I, I heard about that and it's like, well, yes, if you can do that instead of going to that point where they're gonna take from you, uh, that, that would be an option.
[00:26:16] Tom Basey: But that's still to me, that's still, that's saying that your home is an asset and it has that cash value upon saying, what if you and your wife die? Like, I've got one son, my, my wife and I, when we die, whatever home property we have, he's gonna get that. And, or he could sell it, maybe he didn't, he didn't live in the same town. But if that's been consumed by a reverse mortgage, then there's, he's not getting anything.
[00:26:38] Ed Watters: Yeah. Yeah. The, uh, there's a lot of options and tricks that you have to watch out for. So that's why people need to contact people like you, Tom.
[00:26:50] Tom Basey: Yeah.
[00:26:50] Ed Watters: Uh, is there any call to action for people today?
[00:26:55] Tom Basey: My request is visit basey- insurance.com or connect with me on social media, either Tom Basey or Basey Insurance. Find me on their preferred social media platform and let's just connect, make the connection. Then certainly through those, they can make an appointment or a phone call, something like that. They can, they can hit a link there and get on my account about it, and that's saying, I like to just visit, I talk about this stuff. So we're, it's not, it's, it's a no obligation, right? We don't even have to do a quote, they can just ask some of these questions, too. But in theory we'll discuss it and then I can generate some order so they can get a feel for, if they want it, is in the pricing for them.
[00:27:29] Ed Watters: Yeah, it's always wise to plan properly. Uh, my, my cousin told me the seven P principle is Proper Prior Planning Prevents Piss Poor Performance. And I, I really take that at heart, you know, plan properly so we don't have to go through dreadful things in life.
[00:27:53] Tom Basey: Yeah.
[00:27:53] Ed Watters: Tom, I wanna say thank you for returning and sharing your wisdom with us, thank you for being on the Dead America Podcast.
[00:28:02] Tom Basey: Wonderful. I'm grateful to have this platform to be able to visit people. Thank you for hosting Ed, you have a good rest of your day.
[00:28:07] Ed Watters: You also, sir.
[00:28:11] Thank you for joining us today. If you found this podcast enlightening, entertaining, educational, in any way, please share, like, subscribe, and join us right back here next week for another great episode of Dead America Podcast. I'm Ed Watters your host, enjoy your afternoon wherever you may be.
Other Episodes With Tom Basey
Understand Your Medicare
Tom Basey from Basey Insurance discussed the importance of a policy to protect one’s assets and legacy. He explained that two out of three people over 65 are expected to need some form of care, typically lasting for three years. He suggested that people consider getting a policy in their 40s or 50s, as it gets more expensive the longer you wait. He also discussed the different types of policies, the limitations of Medicare and Medicaid, and the potential of using a reverse mortgage to cover long-term care costs. He encouraged people to contact him or visit his website to learn more about their options.
Tom is ready to help!