KNIGHTS OF COLUMBUS INSURANCE “Your Shield For Life”.
November – LTC Awareness Month
Common LTC misconceptions
As Baby Boomers have reached retirement years, long-term care (LTC) insurance products have gotten more public attention, but they’re still not well understood, especially when it comes to how to pay for care. For example, many Americans believe that Medicare pays for long-term assistance with the basic activities of daily living — but it doesn’t. It applies only to those who have been in the hospital 72 hours and are diagnosed as requiring “skilled care.” Medicaid covers care only if and when the person has gone through a “spend down” and has no other means to pay for it. Not a good situation to be in.
Another common issue is that Boomers think they can wait to buy LTC. Unfortunately, this could be a financial devastating choice. What happens if you suddenly become ill or uninsurable before you have made this purchase? Again, not a good situation.
Waiting to buy will also increase the cost of the premiums you pay. Consider this example. If you buy a Knights of Columbus Comprehensive Long-Term Care policy for yourself with a $200 daily benefit, lifetime benefit duration and 30-day elimination period at age 40, your annual premium will be $739.20. The total premium paid by age 85 will be $33,264. If you decide to wait to buy the same policy until you are 60 years old, your annual premium will be $2,374 and the total premium paid by age 85 will be $59,350. That’s a difference of more than $26,000. (This example is for comparison purposes only.)
Personal service is crucial in choosing LTC policy options, and for adjusting them as necessary. Group LTC may indeed be a viable option for you, but as your Knights of Columbus agent, I can help you compare the details so you can make an informed decision.
To contact me with regards to LTC or any of your insurance needs, please call my office at (916) 691-4571 or e-mail me at hank.cornell@kofc.org
By Knights … For Knights ….
Hank Cornell, FIC
Ca Lics #0G05138