Texas Long-Term Care Insurance
Is It Right for You? Understanding the Pros and Cons
For over 30 years, ACACIA Insurance has specialized in long-term care planning. As independent advisors, we represent numerous highly rated insurance companies and plan types.
Our focus is always on your best interests, carefully assessing policy features and benefits to present the top choices for your consideration.
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Multiple Highly Rated Companies
Who Needs Long-Term Care
Almost 70% of people turning age 65 today will need some type of long-term care in the future. The average length of time people need care is 3 years.1
One-third of people may never need long-term care, but 20% will need it for longer than 5 years. On average women need 3.7 years of care while men need 2.2 years.2
In 2025, the average cost for 3 years of long-term care in Texas is $207,855 ($69,285/year). That cost is projected to be $455,436 ($151,812/year) in 2045.3
Cost of Long-Term Care in Texas
Texas Long-Term Care Costs – 2025 (annual) | |||
| Nursing Home (private room) | Assisted Living (private room) | Home Care (44 Hours/week) | |
| Texas Average | $69,285 | $60,980 | $61,336 |
| Region | Nursing Home | Assisted Living | Home Care |
| Abilene | $72,215 | $70,586 | $55,681 |
| Amarillo | $73,873 | $45,176 | $59,331 |
| Austin-Round Rock | $80,944 | $76,508 | $75,473 |
| Beaumont-Port Arthur | $66,293 | $62,444 | $37,702 |
| Brownsville-Harlingen | $76,517 | $53,637 | $41,797 |
| College Station-Bryan | $76,225 | $67,501 | $64,707 |
| Corpus Christi | $88,797 | $59,927 | $60,897 |
| Dallas-Fort Worth | $77,333 | $64,241 | $64,952 |
| El Paso | $80,643 | $46,072 | $49,095 |
| Houston-Pasadena | $73,519 | $65,540 | $61,758 |
| Midland | $76,872 | $78,623 | $63,026 |
| Killeen-Temple | $74,519 | $53,408 | $62,140 |
| Laredo | $88,440 | $55,732 | $42,015 |
| Longview | $61,268 | $54,919 | $53,502 |
| Lubbock | $78,600 | $53,185 | $59,119 |
| McAllen-Edinburg | $91,029 | $53,932 | $48,757 |
| Midland | $76,872 | $78,623 | $63,026 |
| Odessa | $63,937 | $70,385 | $63,082 |
| San Angelo | $66,484 | $69,611 | $49,760 |
| San Antonio | $73,317 | $61,192 | $68,054 |
| Sherman-Denison | $67,413 | $46,338 | $65,579 |
| Tyler | $62,306 | $60,606 | $47,333 |
| Victoria | $69,842 | $66,905 | $55,829 |
| Waco | $65,614 | $67,249 | $64,734 |
| Wichita Falls | $69,032 | $50,884 | $51,818 |
Source: Nationwide Financial 2025 annual cost of care survey conducted by HVS, site accessed 4/21/2025
Does Medicare Cover Long-Term Care?
Medicare does not typically cover long-term custodial care, which includes help with daily activities like bathing, dressing, or eating. Custodial care is the most common type of care people need as they age or face chronic health conditions.
Coverage by Medicare is limited 
to specific medical needs. It may cover short-term skilled nursing care in a facility, but only under certain conditions. Specifically, Medicare will pay for up to 100 days in a skilled nursing facility after a qualifying three-day hospital stay. Even then, coverage is only provided for the first 20 days; from days 21 to 100, a daily copayment is required. Because of these limitations, many people explore long-term care insurance for future care needs. Planning ahead is important to ensure you have coverage for custodial care, which Medicare does not provide.
Further, about 80% of care at home is provided by unpaid caregivers 
. With more than half of this care including intensive caregiving assistance with personal care such as bathing or feeding.4 And it’s not only seniors that need long-term care. Over 35 percent of people currently receiving care are between the ages of 18 and 64.5
Key Takeaway: Medicare does not cover long-term custodial care and offers only limited short-term skilled nursing coverage after a hospital stay. To prepare for future care needs, consider options like long-term care insurance, or if you don’t have many assets, Medicaid.
When To Buy Long-Term Care Insurance
The best age to buy long-term care insurance is typically between your mid-50s and early 60s. During this period, premiums are generally more affordable, and you’re more likely to have good health and qualify for coverage. Waiting can result in higher premiums or difficulty qualifying due to health issues.
However, purchasing too early means paying premiums for many years before you’re likely to need benefits, which may not be cost-effective. The right time depends on your health, financial situation, and risk tolerance.
A balanced approach is to start exploring options in your 50s when you may be able to lock in better rates with preferred health discounts. Consulting with a long-term care insurance specialist can help determine the best timing based on your individual circumstances and goals.
Find out if you health qualify >Types of Long-Term Care Insurance in Texas
Traditional Long-Term Care Insurance
- Design: Specifically designed to cover long-term care expenses, such as in-home care, assisted living, or nursing home care. Provides the most comprehensive long-term care benefits for your dollar.
- Benefits: The broadest set of options & benefits. Provides a daily or monthly benefit for a set period or the policyholder’s lifetime, depending on the policy terms.
- Premiums: Recurring premiums paid monthly, quarterly, or annually. Possibility of premium increases over time.
- Underwriting: Requires medical underwriting, where health status impacts eligibility and premium costs.
- Tax Advantages: Premiums may be tax-deductible, and benefits are generally tax-free for qualified long-term care policies.
- About Traditional Long-Term Care Insurance >
Life Insurance with Long-Term Care Rider
- Design: Combines permanent life insurance with a rider allowing access to benefits you can use for long-term healthcare. If care is not needed, your asset passes to your estate as a tax-free death benefit.
- Benefits: May build cash value and have a Return of Premium option
- Premiums: Premiums will NOT increase. Cost is higher than standard life insurance due to the added rider, but often more cost-effective than separate policies.
- Underwriting: Medical underwriting is usually less strict than traditional long-term care insurance.
- Tax Advantages: 1035 exchanges are possible and can be funded with qualified dollars (IRA, 401k, etc.)
- About Life Insurance with Long-Term Care >
Annuity with Long-Term Care Rider
- Design: A deferred annuity contract with a rider to cover long-term care expenses. Includes a fixed interest rate and possible indexing for asset growth
- Benefits: Long-term care benefits are usually double or triple the value of the annuity. If not exhausted paying for long-term healthcare, the annuity will transfer to your estate at time of death.
- Premiums: No premium increases. Can be purchased using a single premiums payment.
- Underwriting: Health underwriting is simpler than the other plans available.
- Tax Advantages: Tax-Free 1035 exchanges are possible from an existing annuity to a long-term care annuity.
- About Long-Term Care Annuities >
Short-Term Care Insurance
- Design: Provides coverage for care in a nursing home, assisted living, or at home for a short duration, typically up to 12 months.
- Benefits: Helps cover costs for temporary care needs, including recovery from surgery, illness, or injury. Most policies have a 0-day deductible with benefit being paid out as soon as you qualify. This can bridge gaps before long-term care insurance or Medicare kicks for services like a home health aide.
- Premiums: Generally lower than long-term care insurance due to the shorter benefit period, making it an affordable option for many.
- Underwriting: Often features simplified underwriting with fewer health questions, making it easier to qualify. This can be very helpful for those who may not meet long-term care insurance health or age requirements.
- Tax Advantages: Premiums may be tax-deductible if the policy qualifies as tax-qualified under federal guidelines.
- About Short-Term Care Insurance >
Texas Long-Term Care Partnership Program
Texas Long-Term Care (LTC) Partnership policies are an option when planning for future care needs. These policies mix private long-term care insurance with Medicaid asset protection 
. This feature can help protect your savings if you later become eligible for Medicaid. Unlike regular LTC insurance, Partnership policies are designed to shield your money when you use care services like nursing homes, assisted living, or help at home.
Here’s how it works: If your care needs go beyond what your Partnership policy covers, it steps in to protect your assets. For every dollar your policy pays toward your care, a dollar of your savings is safe from Medicaid’s rules about how much money you can keep. Plus, the same amount your policy pays is protected from something called Estate Recovery 
, which means the state can’t take that money back from your estate after you pass away. This is especially helpful for people with a moderate amount of savings who want to plan ahead for Medicaid.
The cost of Texas LTC Partnership policies is about the same as regular long-term care insurance. Still, it’s smart to compare them with other choices, like non-Partnership policies or hybrid long-term care insurance plans. Depending on your situation, those other options might fit your needs better.
Texas Partnership Reciprocity
The State of Texas is part of a national agreement providing reciprocity for long-term care insurance. This means if you buy a Partnership Long-Term Care policy in another state, you can keep its benefits if you move to Texas. As explained above, these benefits help protect your savings if you need Medicaid later.
If you’re already getting benefits from your LTC Partnership policy before you move to Texas, the state will still count those benefits to protect your savings when you apply for Medicaid in Texas 
.
Most states have this reciprocity agreement, but not all. So, if you move to a state without reciprocity, you might not get the same protection for your savings.
Texas Long-Term Care Insurance Companies
There are several long-term care insurance providers in Texas. These companies differ in coverage, financial stability, premiums, and underwriting requirements.
As independent advisors, we compare all providers to find the best policy for your needs and budget, focusing on premiums, benefits and financial strength.
- Bankers Life
- Brighthouse Financial
- Global Atlantic
- John Hancock Life Insurance Company
- LifeSecure Insurance Company
- Lincoln Financial Group (MoneyGuard)
- Mutual of Omaha
- National Guardian Life (NGL)
- Nationwide Life Insurance Company
- New York Life
- Northwestern Mutual
- Securian Financial
- State Life Insurance Company (OneAmerica)
- Thrivent
Average Cost of Long-Term Care Insurance in Texas
The cost of long-term care insurance in Texas depends on several factors. These include your age, health history, plan design, and the type of plan you choose. The following features allow you to customize your coverage for your situation:
- Benefit Period: Determine the duration of benefits that fits with your needs and budget.
- Daily Benefit: Select a daily benefit amount based on your preferences and the cost of care in your area.
- Elimination Period: A deductible but measured in days, the elimination period lets you choose how soon your coverage begins.
- Inflation Protection: This option safeguards your coverage against the impact of inflation over time.
Here is a sample of long-term care insurance costs in Texas. These are average monthly costs by purchase age for $144,000 in level benefits, without annual inflation growth. Rates are for preferred health which has the lowest cost.
Cost of Long-Term Care Insurance in Texas (monthly) | |||
| Age 55 | Age 60 | Age 65 | |
| Male | $77 | $93 | $139 |
| Female | $111 | $139 | $210 |
| Couple | $151 | $185 | $279 |
For the same applicants purchasing a policy with 3% annual inflation growth protection, the average monthly costs are:
| Age 55 | Age 60 | Age 65 | |
| Male | $139 | $158 | $205 |
| Female | $232 | $266 | $347 |
| Couple | $296 | $339 | $442 |
Long-Term Care Insurance Texas Quotes
Get expert guidance when comparing long-term care insurance rates in Texas. Our licensed professionals offer:
✔ Clear comparisons of multiple Texas long-term care insurance options
✔ Suggestions for the company best suited to your situation and goals
✔ Assistance with health qualifying for coverage
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FAQs about Texas Long-Term Care Insurance
Yes, Texas has a Long-Term Care Partnership Program. As outlined above on this page, it is a collaboration between private insurers and the State of Texas. It encourages long-term care planning with additional asset protection benefits.
You can find a long-term care insurance broker in Texas by searching online. Look for licensed brokers and insurance agents who specialize in long-term care insurance and represent multiple insurance companies. Working with an experienced professional can help you compare plans effectively. About Long-Term Care Planning >
Here are the four types of long-term care insurance plans available in Texas. One of our long-term care professionals can make carrier and plan recommendations based on your situation.
- Traditional Long-Term Care Insurance
- Life Insurance with Long-Term Care
- Long-Term Care Annuities
- Short-Term Care Insurance
To pick the best long-term care insurance in Texas, compare policies from multiple top-rated insurers, considering coverage options, benefit amounts, and inflation protection. An experienced LTC insurance broker can tailor recommendations to your health, financial goals, and preferences. Always review policy details carefully. Choosing the Best LTC Insurance >
Long-term care (LTC) insurance quotes in Texas are provided by licensed insurance agents and brokers. These professionals compare multiple insurers and policy options to help you find coverage that fits your needs and budget. Independent agents often represent several top-rated companies. Request LTC Insurance Quotes >
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About the Author: Craig Matesky
Reviewed by: Mike Berger