Dear Toni
I applied for long-term care insurance, but it was not possible because I had a pacemaker installed in January. The agent who presented me with the LTC plan suggested that I apply for cancer insurance to help with my out-of-pocket costs in case I had cancer problems.
I didn’t apply for long-term care because I won’t be 65 until October of this year. Now I realize that waiting until I’m an adult isn’t a good idea. What is the difference between cancer insurance and long-term care insurance? thank you.
— Leonard from Tampa, Florida
Hi Leonard:
In the Tony Says office, I am noticing an increase in long-term care issues as many people wait until retirement well beyond age 65 to apply for traditional long-term care insurance. By that time, your premiums will be out of your retirement budget or you will be unable to qualify due to health problems.
It’s important for Americans to start looking for long-term care insurance when they turn 50 so that premiums are more affordable and plans can be expanded with a compound lifetime inflation rate of at least 3%.
Nursing home care costs are projected to rise significantly from an average annual cost of $115,000 in 2023 to more than $207,000 in 20 years. The average cost of assisted living, which is cheaper than care in nursing homes, is about $57,000 per year and is projected to rise to about $103,000 per year over the next 20 years. But most of us would rather stay home, and home care currently costs about $30 an hour. You have no idea what that cost will be in the future!
There is a big difference between long-term care insurance and cancer insurance. The insurance industry has designed various types of products for Americans who are concerned about long-term care and are looking for plans that are affordable or that have underwriting approval from their insurers. Mr. Leonard, that was the problem you had.
Learn about different long-term care plan options and cancer insurance plans.
Long-term care options:
1. Conventional long-term care insurance: The younger you are, the cheaper the insurance premium. Look for long-term care insurance while you’re young and healthy. An LTC plan covers nursing home care, assisted living, or home care after you have met the deductible for 30, 60, or 90 days (or more). The LTC plan is the top of the long-term care plan.
2. Life and Annuity Insurance: Many life and annuity policies have long-term care clauses or endorsements. These plans may not meet future LTC needs unlike traditional LTC policies.
3. Veterans Benefits for Long Term Care, “Aid and Attend” Benefits: There are billions of veteran pension dollars available for long term care of veterans who apply for benefits. To be eligible, you must be in need of care. (Thanks to the VA for providing this wonderful benefit to veterans and spouses!)
4. Medicaid: People with too much income or assets may not be eligible for state long-term care benefits through Medicaid.
Cancer Insurance Plans: Cancer plans provide a lump sum payment when you are diagnosed with cancer. For example, for a given monthly premium, the plan will pay him a set amount of $30,000. Cancer insurance plans are cheaper than LTC insurance, but do not have the benefits of LTC plans.
Readers, don’t put off until tomorrow what you can do while you’re young and healthy.
© 2023 Toni King, Distributed by Counterpoint Media
Toni King is an author and columnist on Medicare and health insurance issues. She has been a top sales leader in the field for her nearly 30 years. If you have questions about Medicare, email [email protected] or call 832-519-8664. Toni’s new book, The Medicare Maze, is now www.tonisays.com. The Medicare Maze is the first instructional book containing scriptures and positive quotes to help reduce the stress and anxiety associated with transitioning to Medicare.
by Tony King
© 2023 Toni King, Distributed by Counterpoint Media
Toni King is an author and columnist on Medicare and health insurance issues. She has been a top sales leader in the field for her nearly 30 years. If you have questions about Medicare, email [email protected] or call 832-519-8664. Her new book, Toni’s Maze of Medicare, is now www.tonisays.com. The Medicare Maze is the first instructional book containing scriptures and positive quotes to help reduce stress and anxiety about transitioning to Medicare.
