Texas Long Term Care Insurance

(Because you deserve affordable care in your golden years)

Christine Lacagnina Written by Christine Lacagnina
Christine Lacagnina
Written by Christine Lacagnina

Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.

paul martin Reviewed by Paul Martin
paul martin
Reviewed by Paul Martin

Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.

Long term care insurance in my state

Texas is home to millions of senior citizens aged 65 and older. Though you may be enjoying maximum vitality in mid-adulthood, it’s never too early to start contemplating possible long-term care costs. 

A potential health decline may be a grim subject to ponder so soon, but you might end up thanking yourself for preparing for costs now, since much like life itself, healthcare tends to get more expensive as you age.

Long-term care is expensive, so many folks plan for it far in advance. For those wishing to take charge of the financial aspect of their future, fortunately there are plenty of long-term care insurance options in Texas. 

Independent insurance agents are absolute experts in long-term care insurance and can help you find exactly what you need. But first, a briefing on long-term care insurance.

What Is Long-Term Care Insurance?

Basically a different angle on life insurance, long-term care insurance is a type of policy designed to help you prepare for the financial side of assisted living services and other medical fees when you get older. 

Of course, you might not end up needing this coverage if you remain in good health as you age, so unless you’re already in poor health, it’s more of a “just in case” method of preparation. Setting money aside while you’re young and healthy can make a huge difference.

No one wants to think about the possibility of their health declining in the future or one day needing extra medical care, but if it does happen, having a financial cushion in place can at least help to soften the blow. 

Having to pay out of pocket for increased medical costs after retirement can be extremely stressful, especially if you haven’t planned for it in advance. Long-term care insurance aims to help make this phase of life easier for the elderly.

How Does Texas’ Long-Term Care Insurance Work?

It all starts with paying a regular premium. Long-term care insurance is often purchased by adults in their 40s who have watched their parents go through assisted living or paying other excessive medical fees, and in turn became inspired to start setting money aside for themselves to use later in life. 

Once you purchase a policy, you’ll pay a monthly premium for a long period towards an eventual benefit payout if and when you need it.

Benefits kick in once you’re in need of long-term care. In other words, you’ll get your policy’s payout when you actually go into a nursing home or assisted living facility, or are diagnosed with an ailment that requires another form of long-term care, such as continuous treatment and doctor visits. 

Depending on your specific policy, you may receive a certain amount of your benefits daily, weekly, or monthly.

Long-term care insurance is very similar to a life insurance policy, the difference being that you’re the one who gets the benefit payout—to use while you’re still alive. Working with an experienced independent insurance agent is the best way to find a policy that’s set up in a way that benefits you as much as possible.

What Does Texas’ Long-Term Care Insurance Cover?

Pretty much all forms of long-term care that may be necessary in old age or following a particularly severe health diagnosis. Long-term care insurance is set up to help in the event that you outlive the money you’ve saved up or find that maintaining your self-care becomes more expensive in your advanced years. 

You can use your benefit payout to help with all kinds of medical costs. Here is a handful of the most common services and fees to apply coverage to.

Long-term care insurance benefits can help provide coverage for costs associated with the following:

  • Nursing homes
  • Assisted living facilities
  • Extended hospital stays
  • Recurring doctor visits
  • Multiple surgeries
  • Testing and diagnostic processes
  • Prescription medications
  • Physical therapy or other rehabilitation following surgery
  • Chemotherapy and radiation treatments
  • Fees associated with treating and recovering from long-term illnesses like stroke, dementia or Alzheimer’s disease

It’s often said that life gets more expensive as you age. Unfortunately this is often the case, especially if increased medical care is required. Luckily those who plan ahead by purchasing a long-term care insurance policy can seriously help themselves with potential extra costs in their golden years.

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Why Would I Need Texas Long-Term Care Insurance?

Mainly to help pay for long-term medical costs once you’ve retired, because Medicare won’t pay for everything. But really there are tons of reasons that might inspire you to look into long-term care insurance. Here’s a look at just a handful.

You might want to get a long-term care policy for one or more of the following reasons:

  • You don’t want to put a financial burden on your kids when you’re older by asking for their help with your medical payments.
  • You won’t have enough money set aside in savings after retirement to cover your living expenses and increased medical costs.
  • You’ll be financially strained post-retirement, but not so much so that you’ll qualify for Medicaid.

In addition, the costs of nursing homes, assisted living facilities, and other long-term treatment can be staggering.

Here are just a few examples of average expenses for Texas seniors requiring long-term care:

  • The national median cost of assisted living is $4,000/month, or $48,000/year.
  • On average, a private room in a nursing home costs about $8,365/month, or $100,380/year.
  • Home health aides typically charge $20.50/hour for their services. Seniors often spend $50,668/year on home health aides.
  • The average daily cost of adult day health care centers is $68.
  • The average cost of cancer treatment is around $150,000 in total.
  • Additional treatment for Alzheimer’s disease can increase assisted living center costs by as much as $1,000/month.

Though more than half of surveyed American adults plan to rely on Medicare for their medical costs if necessary, sadly Medicare typically doesn’t cover assisted living expenses. 

It’s important to keep this in mind when deciding whether to invest in a long-term care insurance policy, as well as the high costs of other long-term medical treatment and services.

What Factors Influence the Cost of Texas Long-Term Care Insurance?

Several factors influence the cost of long-term care insurance, and they’ll depend on your specific health insurance company. But in general, you’re likely to be asked several lifestyle questions, personal profile questions, and whatever other information your insurance company feels is important for calculating your insurance benefits and premium. 

Here are a few of the most common.

Your insurance company may base your premium rates on the following factors:

  • Age
  • Race
  • Gender
  • Weight
  • Lifestyle habits (smoker vs. non-smoker, etc.)
  • Health history
  • Location of residence

As with other forms of life insurance and even health insurance, premiums tend to be on the pricier side for folks who are generally considered to be less healthy and lead riskier lifestyles. Although it depends on many things, in general, the younger and more fit and careful you are, the lower your premium is likely to be.

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How Much Does Long-Term Care Insurance Cost in Texas?

Several factors influence the cost of long-term care insurance, including where you live. The cost of treatment and service rates in your area also influences insurance premiums. 

Though Texas has more affordable rates than many other areas of the country, they’re still nothing to sneeze at. Here’s a look at a few average costs for common long-term care services in Texas.

Average costs of long-term care in Texas:

  • Home health aide daily rates: $119
  • Nursing home care daily rates: $148 for a semi-private room, $195 for a private room
  • Assisted living facility monthly rates: $3,515 for a private room

Texas Long-Term Care Costs – 2018 (Annual)

Region Nursing Home
(private room)
Nursing Home
Assisted Living
(private room)
Home Health Aide
(44 Hrs/wk)
State Median
$78,475 $57,579 $45,540 $45,760
Abilene $78,475 $55,663 $46,410 $43,472
Amarillo $70,080 $57,488 $44,400 $48,620
Austin Area $88,330 $63,875 $62,280 $50,336
Beaumont Area $69,350 $53,655 $46,800 $41,184
Brownsville Area $122,275 $61,685 $41,667 $34,320
College Station Area $62,963 $57,123 $47,940 $48,048
Corpus Christi $94,170 $63,875 $35,700 $44,044
Dallas Area $85,611 $60,773 $52,200 $48,483
El Paso $84,863 $58,400 $27,000 $36,608
Houston Area $83,950 $61,138 $46,350 $49,192
Killeen Area $86,870 $64,879 $48,630 $46,332
Laredo $77,745 $59,221 N/A $34,320
Longview $59,313 $47,450 $37,200 $48,620
Lubbock $82,490 $59,495 $38,400 $43,197
McAllen Area $98,733 $62,233 $48,600 $35,464
Midland $77,745 $56,940 $50,190 $48,048
Odessa $75,435 $56,210 $55,260 $50,222
San Angelo $73,913 $52,378 $53,400 $43,472
San Antonio Area $73,000 $56,575 $47,700 $48,048
Sherman Area $60,225 $51,830 $44,328 $44,616
Texarkana $62,050 $52,925 $27,180 $38,667
Tyler $73,000 $51,100 $45,600 $45,760
Victoria $94,900 $59,313 $52,440 $45,760
Waco $80,300 $52,560 $44,340 $46,904
Wichita Falls $76,650 $54,385 $39,744 $42,328
Rest of Texas $64,970 $47,450 $38,400 $42,900

Source: https://www.ltcinsuranceconsultants.com/long-term-care-insurance-texas/

As for the cost of long-term care insurance, that depends on several factors. The national average for singles aged 55 is $2,007/year, while married 55-year-olds pay an annual combined average of $2,466. Here are some average long-term insurance rates for Texas’ capital, Austin.

Average costs of long-term care insurance for Austin, Texas:

Austin, Texas

Single male, age 40:

$68/month for a benefit amount of $2,500 $95/month for a benefit amount of $3,500 $122/month for a benefit amount of $4,500
Single female, age 40:

$105/month for a benefit amount of $2,500 $147/month for a benefit amount of $3,500 $189/month for a benefit amount of $4,500
Single male, age 55:

$90/month for a benefit amount of $2,500 $126/month for a benefit amount of $3,500 $162/month for a benefit amount of $4,500
Single female, age 55:

$146/month for a benefit amount of $2,500 $204/month for a benefit amount of $3,500 $262/month for a benefit amount of $4,500
Single male, age 70:

$171/month for a benefit amount of $2,500 $239/month for a benefit amount of $3,500 $307/month for a benefit amount of $4,500
Single female, age 70:

$265/month for a benefit amount of $2,500 $371/month for a benefit amount of $3,500 $477/month for a benefit amount of $4,500

Clearly the cost of monthly premiums increases significantly with age, which is a big reason why many long-term care policyholders first purchase coverage in their 40s, to lock themselves into a much lower premium. 

Married individuals also get a price break of up to $100 on monthly premiums, and possibly even more than that if their partner is already a policyholder or looking into their own policy.

What Are the Best Long-Term Care Insurance Partnership Options and Insurance Companies in Texas?

So now that you’ve learned all about what long-term care insurance is, you might be wondering where to get it. Texas started its own partnership program, the Texas Long-Term Care Partnership Program, in 2008. 

The partnership program aids long-term care policyholders if their insurance benefits don’t fully cover their medical costs. Through this program, policyholders are able to protect their assets and still qualify for Medicaid.

As for the top companies to purchase your long-term care insurance from, fortunately for Texans there are several to choose from in your state.

Here are several of the top long-term care insurance companies in Texas:

  • Bankers Life & Casualty
  • Genworth Financial
  • MassMutual Financial Group
  • Mutual of Omaha
  • National Guardian Life
  • New York Life
  • Northwestern Mutual
  • Thrivent Financial
  • Transamerica

An independent insurance agent can help you get set up with the best insurance company for your unique needs. An experienced agent can also help you determine if you might benefit from joining the Texas Long-Term Care Partnership Program. 

Be prepared with a list of your questions and concerns about long-term care insurance policies before you connect with an agent, to help the process run as smoothly as possible.

How to Find the Best Long-Term Care Insurance in Texas

In order to get the protection you need (and deserve), you’ll want to work with a trusted expert. Independent insurance agents will not only know where to find the best coverage and price, but also help to make sense of the fine print.

Consider your unique needs, then connect with an agent to help you take it from there. Have a list of your specific concerns and desires ready before reaching out, to help the process run even more smoothly.

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Why Independent Insurance Agents?

Insurance policies can be complex and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process. 

They’ll make sure you get the right coverage that meets your unique needs. Not only that, they’ll break down all the jargon and explain the nitty-gritty, so you understand exactly what you’re getting.

And when it comes time to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your life back to where it was. How great is that?

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