Long Term Care Insurance Texas Companies, Quotes and Costs
Texas Long Term Care Insurance Review
This Texas Long Term Care Insurance Review explains long term care planning in the state of Texas. Here are the key points covered in this article:
- The risk of needing long term care
- Long term care costs in Texas
- Types of long term care insurance
- The best age to buy long term care insurance
- Texas Long Term Care Insurance Partnership Program
- How much does long term care insurance cost in Texas
- Long term care insurance companies in Texas
- Comparing Texas long term healthcare insurance quotes
Click To Get Texas Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance companies in Texas.
Texas Long Term Care Planning
Planning ahead for future long term care needs is a key part of retirement planning. Many people have had first-hand experience with a loved one who needed long term healthcare services. These experiences emphasize the reality of the financial and emotional stress when a loved one needs long term care.
A long term care plan can protect your retirement assets. Plus it gives you the peace of mind, knowing you can cover the cost of long term care if you need it in the future. Long term care insurance also protects your family from having to be caregivers. And it enables you to choose where you’ll receive any care needed in later years.
What is The Risk of Needing of Long Term Care?
Someone turning age 65 today has about a 70 percent chance of needing some type of long term care during their lifetime. While one-third may never need long term care, 20 percent will need it for longer than 5 years. The average length of time people need long term care services is 3 years.1.
In Texas, the average cost for 3 years of long term care is $231,045 ($77,015 per year) at 2019 rates. That cost is projected to be $417,294 ($139,098 per year) in 2039.2.
And it’s not only seniors that need long term care. Over 35 percent of people currently receiving long term care services are between 18 and 64.3.
Does Medicare Cover Long Term Care Costs?
Medicare is the federal health insurance program for people over 65 and for some younger people with disabilities. But Medicare does not pay for most long term care services. Specifically, Medicare does not pay for custodial care which makes up over 90% of long term care.
An example of custodial care is when someone needs help with walking, bathing, eating, dressing and using the toilet. Custodial care is also what people need most when they have a physical impairment from a stroke. Or, due to cognitive impairment from dementia or Alzheimer’s disease. Don’t make the mistake of thinking Medicare covers long term care costs. It doesn’t.
Types of Long Term Care Insurance in Texas
There are two types of insurance in Texas that pay for long term care costs. And each type of policy has its specific advantages. One of our licensed professionals can provide more details to help you decide which is best for you.
Traditional Long Term Care Insurance – You pay an annual premium, and if you need long term care due to a cognitive or physical impairment, the policy pays for your care. Traditional LTC insurance policies make up about half of all long term care policies sold.
Hybrid Long Term Care Insurance – Hybrid long term care policies combine the benefits of life insurance, or an annuity, with long term care benefits. You can buy a hybrid LTC policy by paying a one-time lump sum premium, or over a set period of time.
If long term care is never needed, the policy works much like a traditional life insurance policy. It would then pay a death benefit to your beneficiary when you die. And the death benefit is often similar to the amount paid for the policy. But if you need long-term care, the amount of money available can exceed the death benefit or annuity value, often several times over, offering tremendous leverage of premium dollars.
The Best Age To Buy Long Term Care Insurance
Like most advisers, we recommend buying long term care insurance in your fifties or early sixties. The primary reasons for this recommendation are:
- The younger you are when you buy a policy, the lower the annual premiums.
- By the time you reach your mid sixties, you’re more likely to have a medical condition that makes you ineligible for a preferred-health discount, or makes it tough to get coverage at all.
- Even though you’ll have to pay premiums a longer period of time, you’ll typically pay less overall than someone buying at an older age.
So it almost never pays to wait. And, while you’re waiting, you’re uninsured. If an accident or illness happens causing you to need long-term care, you’ll have to pay out of pocket.
Texas Long Term Care Costs
Genworth Financial conducts an annual study on Texas long term care costs. Their 2019 Cost of Care Survey covers national long term care costs with over 15,000 long term care providers in 441 regions. Your local cost of care in Texas helps guide you to how much long term care insurance you need. Here is the current cost of long term care in Texas:
Texas Long Term Care Costs – 2019 (annual) |
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| Region | Nursing Home (private room) |
Nursing Home (semi-private) |
Assisted Living (private room) |
Home Health Aide (44 Hrs/wk) |
| Texas State Median |
$77,015 | $58,400 | $45,000 | $48,048 |
| Abilene | $77,015 | $54,130 | $46,065 | $43,472 |
| Amarillo | $75,738 | $58,400 | $42,000 | $45,760 |
| Austin Area | $86,505 | $64,970 | $64,740 | $54,912 |
| Beaumont Area | $71,175 | $56,575 | $52,740 | $45,760 |
| Brownsville Area | $122,275 | $63,693 | $45,720 | $34,320 |
| College Station Area | $80,300 | $56,758 | $49,950 | $47,453 |
| Corpus Christi | $80,300 | $63,839 | $43,668 | $41,184 |
| Dallas Area | $85,082 | $62,415 | $49,800 | $50,336 |
| El Paso | $78,475 | $63,145 | $24,000 | $34,045 |
| Houston Area | $74,825 | $62,087 | $45,000 | $49,489 |
| Killeen Area | $87,739 | $66,156 | $44,595 | $41,184 |
| Laredo | $71,540 | $62,415 | N/A | $41,184 |
| Longview | $61,138 | $48,728 | $44,268 | $43,358 |
| Lubbock | $78,376 | $58,400 | $39,600 | $44,044 |
| McAllen Area | $90,885 | $63,510 | $37,800 | $34,320 |
| Midland | $73,000 | $65,700 | $61,035 | $54,912 |
| Odessa | $85,899 | $58,218 | $39,900 | n/a |
| San Angelo | $91,980 | $62,470 | $39,000 | $43,472 |
| San Antonio Area | $90,155 | $63,145 | $45,000 | $50,222 |
| Sherman Area | $62,050 | $55,188 | $52,923 | $45,760 |
| Texarkana | $62,050 | $54,750 | $29,400 | $41,184 |
| Tyler | $68,620 | $53,290 | $39,510 | $45,188 |
| Victoria | $91,706 | $66,613 | $53,400 | $50,336 |
| Waco | $87,600 | $58,400 | $43,080 | $48,048 |
| Wichita Falls | $76,650 | $54,750 | $38,640 | $44,204 |
Texas Long Term Care Insurance Partnership Program
The Texas Long Term Care Insurance Partnership Program combines private long term care insurance with special access to Medicaid. The Long Term Care Insurance Texas Partnership program allows you to shield part or all your assets while still qualifying for Medicaid if your long term care needs extend beyond what is payable by your long term health insurance policy.
The long term care insurance companies are required by the Texas LTC Partnership to offer specific benefits. This can help remove the guesswork when designing your long term care insurance policy. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. Texas Long Term Care Partnership policies are commonly referred to as Partnership Policies.
Texas Long Term Care Partnership Rates
A Texas Long Term Care Insurance Partnership policy will cost about the same as non-Partnership policies when designed with similar benefits. But, some mandated features of a Long Term Care Insurance Texas Partnership policy can limit flexibility in benefit design.
So it’s a good idea to compare a non-Partnership policy because a wider range of choices may be available and better for your situation. One of our licensed long term health insurance professionals can outline the differences.
Texas Long Term Care Insurance Partnership Reciprocity
If you buy a qualifying long term care insurance policy in another State under their LTC Partnership program, you will not lose your asset protection by moving to Texas. And The State of Texas will recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits from your Partnership LTC policy before moving to Texas.
How Much Does LTC Insurance Cost In Texas?
How much does long term care insurance in Texas? The answer: It depends on your age and health history at the time you buy the insurance. Typically, the younger and healthier you are the lower the cost. Your long term care insurance premiums will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
Click To Get Texas Long Term Care Insurance Quotes Specific To Your Situation.
Long Term Care Insurance Companies In Texas
Texas long term care insurance is available from several well respected insurance companies. We compare these companies to find you the best protection at the lowest cost. Here’s a list of the best long term care insurance companies in Texas:
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1. 2019 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 06/12/2019
2. Cost of Care Survey 2019 (Genworth.com), site accessed 01/18/2020
3. Family Caregiver Alliance (www.caregiver.org), site accessed 6/12/2019