Last Updated November 5, 2019

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Long Term Care Insurance Texas, State Partnership, Premium Cost & Quotes

With a population of over 28 million people as of 2018, Texas is one of the largest consumers of long term care services. The state’s aging population (more than 3.8 million Texans are over 60 years old) has led to a natural increase in demand for home health care, and services at nursing homes and assisted living facilities. This has put a strain on families as well as public and private finances. As far back as 2011, the state’s total long term care expenditure for long term care services was $11.2 billion.

We all buy auto, health and fire insurance in an attempt to protect against unforeseen disasters. But the probability of receiving long term care is much higher than the likelihood of incurring an auto or fire accident. According to the U.S Department of Health and Human Services, someone turning 65 today has a 70% chance of needing long term care and support. Unfortunately, many Texans – and Americans by extensions – delay learning about issues concerning long term care until after they are personally affected. This is the time when you are likely to be under most pressure and making a decision can be complex and confusing.

Because long term care is a retirement planning issue that deserves a lot of careful attention, it’s important to take initiative before it’s too late. This page provides all the information every Texan needs to make an informed long term care decision!


How to Pay for Long Term Care in Texas 

There are several ways that Texan families can pay for long term care:

  1. Personal Savings

If you have substantial assets or sound personal finances, you can use this to pay for long term care. Based on the 2018 Cost of Care Survey by Genworth, the annual cost of a private room at a nursing home was $78,475. More so, the average duration of an LTC event is 3 years. That means that on average – if you needed long term care services – you’d end up spending an estimated $235,425. It’s easy to see how paying for your own care out of pocket can deplete or at least threaten your nest egg. Unfortunately though – due to lack of planning – most Texans end up paying for LTC this way.


We tell our clients that unless you have millions of dollars in net worth, personal funding should be used to pay for long term care only when there’s no other viable option. It’s never a pleasant feeling selling your home or depleting all your hard-earned finances and assets.

  1. Medicaid

Medicaid is a joint federal and state program that covers the cost of healthcare services for low income individuals. This program caters for nearly a third of the total nursing home care in the country, and also covers at-home and community-based care. Most people who need long term care insurance won’t qualify for Medicaid though – due to stringent asset and income guidelines. Before Medicaid can step in, you’ll need to nearly exhaust all your assets. Texas citizens are allowed to retain only $2,000 worth of assets before they can qualify for Medicaid LTC support. That only makes this a reasonable option for individuals who aren’t able to afford or qualify for LTC insurance.

  1. Annuities 

For some people, annuities can be a reasonable (and reliable) vehicle to pay for long term care services should need be. You purchase an annuity from an insurance company by making a lump sum deposit or several premiums. In exchange, the insurer will send you a series of regular payments over a defined time duration. Reallocating your assets such as savings, cash, or CDs into a long term care annuity can help maximize your assets in the case you need long term care. By purchasing an annuity, you’ll be leveraging your assets into 3X or 4X of your principal investment if you ever need care.

Let’s say you’re a 65 year old woman with $100,000 available. You can reposition this into a combo fixed annuity in exchange for LTC benefits over an 8 year period. This way, the lump sum amount of $100,000 can be leveraged into $400,000 or $500,000 of tax free dollars to provide about $4,000 – $5,000 of monthly benefits through 8 years should you need long term care. And in case you do not need long term care services at all, the $100,000 cash value will be left to your dependents or favorite charity.

The challenge with annuities is to find the right one. There are so many products with so many different features and provisions in the market that most people are confused. LTC Tree insurance specialists help Texas citizens who’d like to pursue this path find the best product to meet their specific needs.

  1. Long Term Care Insurance 

For the majority of Texans, long term care insurance is the best (and preferred) vehicle to protect against the devastating cost of long term care. These policies typically pay benefits on a daily, weekly, or monthly basis. You’ll be able to customize your plan by selecting the preferred benefit amount, elimination period duration, as well as inflation protection when buying your policy. There are two types of long term care insurance available for Texans.

  • Traditional long term care insurance – by contributing premiums for traditional LTC insurance, you get reimbursed for some or all of your LTC expenses. This option is an excellent alternative to paying out of pocket or relying on Medicaid. If you do not end up needing long term care, then the policy will be of no use. This use-it-or-lose it approach, as well as premium rate hikes, has made traditional LTC insurance less popular in yesteryears.
  • Hybrid long term care insurance – hybrid LTC insurance combines the benefits of conventional LTC insurance and permanent life insurance into a single policy. In this case, the premium rates are guaranteed, and a death benefit is given to your dependents if you do not end up needing long term care support. These policies eliminate the ‘use-it-or-lose-it’ concern that many people have with traditional LTC coverage. Most hybrid long term care policies in Texas also have a return of premium provision in case you change your mind. In many ways, hybrid long term care insurance is the best way to protect your loved ones and assets from the costs of care.

Services That Aren’t Covered by Long Term Care Insurance

Most Texas long term care policies do not cover the following:

  • Preexisting conditions – this refers to ailments of which you received medical treatment or advice within 6 months before purchasing the policy. Some policies will delay coverage of preexisting conditions for up to 6 months following the policy’s effective date.
  • Mental/nervous disorders – LTC policies do not cover many mental/nervous disorders. However, they must cover major depressive disorders, schizophrenia, Alzheimer’s, and various other age-related illnesses. Some companies will refuse to approve you for a policy in the case you have already been diagnosed with Alzheimer’s.
  • Care provided by family members – if your family members are taking care of you, then most LTC insurance policies will not pay for this care. Some policies pay to train family members as caregivers.

NOTE: while medicare is often listed as an option to pay for long term care by many websites, keep in mind that it WON’T pay for most LTC services. This federal health insurance program (for senior citizens and younger people with disabilities) doesn’t pay for custodial care, which essential makes up for over 90 percent of LTC. Custodial care comes in handy when an individual requires help with eating, bathing, walking, dressing, or going to the toilet. The majority of people who require long term care after suffering from a stroke or cognitive impairment such as Alzheimer’s or dementia need custodial care.   


Most Popular Long Term Care Companies in Texas

Texas long term care insurance is offered by various reputable companies. Our long term care specialists are always comparing these providers to find out what firms offer the best protection at the most attractive pricing. Here is a list of the best long term care insurance companies in Texas.

  1. Genworth Financial 
  2. Bankers Life 
  3. Mutual of Omaha 
  4. Mass Mutual Financial Group
  5. New York Life 
  6. Transamerica 
  7. John Hancock 
  8. Northwestern Mutual 
  9. National Guardian Life (NGL)


Texas Long Term Care Partnership

The Texas Long Term Care Insurance Partnership program is a joint partnership between the state’s Medicaid program and the insurance companies.  Effective since 2009, this program was designed to give Texans an incentive to buy LTC insurance and in the event one needs care for a long period (typically 5+ years), their assets would be protected. Under a qualified state partnership policy, personal assets to the tune of the total LTC benefits received would be disregarded when calculating Medicaid asset eligibility. That means for every dollar of benefits received, a dollar of worth of assets is saved from the Medicaid asset limit consideration.

It’s important to note that the asset protection is not provided by the insurance company, but rather the state. Thus, purchase of a partnership certified insurance policy doesn’t automatically qualify you for Medicaid. You’ll still need to apply for Medicaid before you can be accepted.

Texas State Partnership Long Term Care Rates

Partnership certified long term care policies in Texas cost about the same as non-partnership policies (assuming similar benefits). Some required features of partnership policies can impede flexibility in benefit design though. Before you settle on a plan, it’s important to expand your range of choice by comparing both partnership plans and non-partnership policies. Our licensed LTC specialists will explain the difference and help you select the best possible plan for your circumstances.

Texas LTC Partnership Reciprocity

Did you buy a qualifying LTC plan under another state’s partnership program? Moving to Texas will not deny you of your asset protection.


Texas Long Term Care Costs

The Texas median cost of care for a private nursing home is about $78,000 annually (as of 2018). Your particular long term care cost will vary depending on where you receive the care, as well as the region you’re in.

Here’s a projection of Texas long term care costs in 2018, based on a Genworth Survey


Long Term Care Cost Texas – 2018 (Annually)
State Median $78,475 $57,579 $9,100 $45,540 $45,760
Abilene $78,475 $55,663 $7,410 $46,410 43,472
Amarillo $70,080 $57,488 $14,300 $44,400 $48,620
Austin Area $88,330 $63,875 $16,900 $62,280 $50 ,336
Beaumont $69,350 $53,655 $9,100  $46,800 $41,184
Brownsville Area $122,275 $61,685 7,800 $41,667 $34,320
College Station Area $62,963 $57,123       _  $47,940 $48,048
Corpus Christi  $94,170 $63,875 $8,320 $35,700 $44,044
Dallas Area $85,611 $60,773 $16,900 $52,200 $48,483
El Poso $84,863 $58,400 $7,540 $27,000 $36,608
Houston Area $83,950 $61,138 $15,600 $46,350 $49,192
Killeen Area $86,870 $64,879         _ $48,630 $46,332
Laredo $77,745 $59,221 $8,320       _ $34,320
Longview $59,313 $47,450 $9,750 $37,200 $48,620
Lubbock $82,490 $59,495 $8,450 $38,400 $43,197
McAllen Area $ 98,733 $62,233 $8,710 $48,600 $35,464
Midland $77,745 $56,940 $16,250 $50,190 $48,048
Odessa $75,435 $56,210           _ $55,260 $50,222
San Angello $73,913 $52,378         _ $53,400 $43,472
San Antonio Area $73,000 $56,575 $10,400 $47,700 $48,048 
Sherman Area $60,225 $51,830     _ $44,328 $44,616
Texarkana $62,050 $52,925 $10,660 $27,180 $38,667
Tyler $73,000 $51,100       _ $45,600 $45,760
Victoria $94,900 $59,313 $10,400 $52,440 $45,760
Waco $80,300 $52,560 $12,350 $44,340 $46,904
Wichita Falls $76,650 $54,385         _ $39,744 $42,328
Rest Of States $64,970 $47,450 $8,320 $38,400 $42,900



Texas Long Term Care Premium Costs

Long term care premium costs in Texas vary based on the kind of coverage you select. Your premium will also be influenced by factors such as your age, health, elimination period, and the length of time through which you need coverage.

Sample premium calculations for Texas Citizens

→ 50 years old male

Let’s take a 50 year old male from the Houston area. Based on 2018 data by Genworth Financial, the average daily cost of care at a private nursing home room in this area was $230. Assuming that the policyholder elects to receive daily benefits of $225 over a benefit period of 2 years, and selecting an elimination period of 90 days, then the annual premium contribution rate will be $1,747.

For a woman of the same age, under the same policy parameters, the annual premium amount would be $2212.

→ 55 year old female

A woman who is aged 55 years old looking to receive daily benefits of $225 over a 4 year period under a 90-day elimination period, the premium annual premium amount would be $3,156.

For a Houston man of the same age under the same policy conditions, the required annual premium amount would be $2445.

→ Couple (each 60 years old)

Let’s take a man and his wife, each aged 60 years old and living in the Houston area. Assuming they’re looking for daily maximum benefits of $225 (each) over a 4 year benefit period, after a 90-day elimination period, then they would need to contribute premium amounts of $2,250 (for each person). If they purchased the same policy separately, the man would need to contribute $2,664 in annual premiums, while the woman would require $4,079. So by purchasing the policy as a couple, they get a huge spouse discount and save over $2,243 in premium costs each year.

→ 65 year old male

To purchase a policy that offers a daily maximum benefit of $225 under a 4 year benefit multiplier and a 90-day elimination period, a 65 year old Houston man would need to contribute an annual premium of $3,528. The annual premium cost for a female of the same age (under the same policy conditions) would be $5,507.

Most Popular Long Term Care Companies in Texas

  • 1) Genworth
    2) Mutual of Omaha Mutual Care Plus
    3) Genworth Privileged Choice Flex 2
    4) Mutual of Omaha
    5) Genworth Privileged Choice Flex
    6) Genworth Privileged Choice Flex 2
    7) Mass Mutual
    8) Transamerica
    9) Genworth Flex 2
    10) Mutual of Omaha Mutual Care Plus
    11) Transamerica TransCare II 2012
    12) Northwestern Mutual TTQuietCare 2013
    13) Mass Mutual, Signature Care MM-5002013
    14) John Hancock Custom Care III 2012
    15) New York Life LTC Select Premiere 5.5

Most Insured Cities in Texas


1) Houston – last quote: $200/day
2) Austin – last quote: $150/day
3) Dallas – last quote: $150/day
4) San Antonio – last quote: $150/day
5) Fort Worth – last quote: $200/day
6) Plano – last quote: $150/day
7) Arlington – last quote: $200/day
8) Katy – last quote: $200/day
9) Round Rock – last quote: $130/day
10) Spring – last quote: $150/day
11) Lubbock – last quote: $150/day
12) Sugar Land – last quote: $120/day
13) Denton – last quote: $200/day
14) Conroe – last quote: $100/day
15) Cypress – last quote: $200/day

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