Adam, I have a Cancer policy that I’ve been paying on for years. Can I drop this policy once I get onto a Medicare Supplement?
In order answer this question you will need to examine the benefits of your cancer policy. A good deal of those cancer policies have a level premium meaning that the monthly cost of the policy has not increased since you took it out. You also need to see how the policy pays. Most cancer policies pay out a fixed amount directly to the client not the provider. Now, once you get onto Medicare and purchase a Medicare Supplement virtually all of your medical needs whether its in the hospital or in an outpatient facility will be covered. This includes doctor visits, chemotherapy, radiation or surgery for cancer. Cancer is obviously a very serious disease and can not always be treated by a local doctor. This means that you could have some significant travel expenses with the cost of gas, hotels and out to eat food. Medicare and a Supplement will not pay for these expenses however, a cancer policy that pays directly to the client can help with those expenses.
So, as long as your policy has a low, level premium and pays directly to you the policy holder then a cancer policy can be worthwhile to hang onto even with Medicare and a Medicare Supplement. But if the policy is going to raise the premium significantly once you hit age 65 or 70 and pays to the provider then it might not be worth it to keep paying for your cancer policy because the cost is going to increase and the coverage will be duplicated by the Supplement. Just be sure to have an agent review your policy once you age into Medicare