Texas Long Term Care Insurance

Texas long-term care insurance is coverage designed to assist individuals as they get older and may need the assistance of a care giver whether in the home or in a facility. It differs from the medical plan typically purchased to treat or cure illness or injury.

Long-term care serves to maintain a lifestyle for those who have a medical condition that is not going to improve.

There is more to a long-term plan, though. It may also serve as a financial instrument in planning for the mature years of life. As more of the population ages, the necessity of long-term care has never been more apparent in terms of preserving a quality of life when there is a need for assisted living.

Consulting with a qualified agent is a good place to start. You can also use the FREE comparison search tool above!

The Statistics Reveal the Reality of Need

According to Alzheimer’s Disease Facts and Figures 2014, there is growing evidence of the onset of debilitating illness such as the cognitive impairment experienced with Alzheimer’s Disease. In Texas alone, 330,000 individuals are affected by Alzheimer’s Disease.

The projection for the nation is to see a new case of Alzheimer’s Disease diagnosed every 67 seconds. The economic impact of Alzheimer’s in this country has reached $24 billion each year.

Illness and disability are common enough to know that many will be faced with these challenges. Carrying on with routine activities such as getting around, eating and bathing calls for regular assistance on a daily basis.

Supervisory attention is often necessary for a person’s safety such as monitoring behavior around open flames or remembering to take daily medications.

The Types of Texas Long-Term Care

What has been described to this point would fall under custodial care. This level of personal care assists with routine activities and occurs either in the home or within a skilled facility.

Skilled care, on the other hand, is for those with medical conditions requiring the aid of a nurse or therapist and is provided in a care center, such as a nursing home.

There are numerous options for those needing daily care. Long-term care service occurs within the home or in a facility such as an assisted living center, an adult day care center or a nursing home.

It all comes down to how much help a person needs and what would make them the most comfortable.

The Impact of Long-Term Care on the Budget

When you get a sense of the cost related to long-term care, you begin to understand how useful the insurance coverage is in planning your finances for later in life. Of course, the cost varies greatly as to what services are available depending upon the choices made.

In Texas, long-term care costs average as follows:

Options Exist When it Comes to Paying for Long-Term Care

While the Affordable Care Act has been enacted to protect persons seeking health insurance, long-term care insurance is not part of this federal health care reform law. Getting started, it is best to evaluate your need for long-term care coverage. A simple suitability worksheet will help you determine your needs regardless of what age you are when you are considering buying a plan.

It is useful to examine your:

• Personal risk factors, such as life expectancy, gender, family health history and the family situation
• Financial considerations regarding premiums, income and assets

Long-Term Care Insurance Serves as a Form of Asset Protection

As a form of asset protection, long-term care insurance may be useful in preserving personal finances. However, if you struggle just to stretch your income sufficiently to cover the basics, long-term care insurance does not make much sense.

Those who fail to plan in advance are often left using up personal cash or savings to pay for care. It is possible to obtain coverage through Medicaid or Medicare, depending upon your eligibility. Insurance agents are required to produce a personal worksheet for you including the potential rate increase disclosure form outlining coverage.

Consulting with a trusted financial adviser helps in making good decisions for your personal circumstances.

The decision to buy coverage should be centered on the following considerations:

• Individual or family assets
• Financial outlook over the next decade or two
• If personal assets are sufficient to substantiate the purchase of a long-term care policy
• The cost of a long-term policy
• If you can manage the premium by yourself
• The significant difference in the premium level if you wait until you are older before buying a policy
• If you are prepared should your income decrease or if the premiums increase significantly
• If there are family members that will help with the expense
• If your premiums will be paid from income, investments or savings.

Premiums start out lower the earlier you purchase a policy. Agents qualified to offer the plans can help navigate these and any other questions as well as provide price comparisons between providers. A consultation helps make the complexities of coverage easier to understand.

How to Buy Texas Long-Term Care Insurance

Aside from an individual policy, it is possible to participate in a group plan provided by an employer or membership association. You need to be aware of the requirements in converting coverage in the event of leaving your association or employer.

These plans undergo an underwriting process for eligibility. Some carriers offer annuities or life insurance plans with a rider that covers long-term care. You need to be aware of your rights along the way to ensure you are not left without protection.

The Option of the Texas Long-Term Care Partnership Program Policies

Texas partners with private insurers in a joint effort to provide tax-qualified plans including an asset disregard benefit with inflation protection. This is a program that helps to educate Texans about the need for long-term care planning.

Partnership policies are useful when Medicaid is going to pay for expenses. This option relies on a means test to determine if individuals meet the income, medical and other criteria for eligibility.

Partnership policies may not meet your needs. You must be careful about making changes to keep from losing the partnership status. Partnering with other states, Texas has agreements to honor your plan if you move out of state. However, that does not mean the agreements cannot change.

Your agent will be the best source of help regarding partnership plans and their restrictions.

Understanding How Long-Term Care Plans Work

It is important to understand that long-term coverage is not the same from one company to another. There are different eligibility criteria that must be met before benefits are triggered.

There are six activities of daily living known as ADLs that are evaluated in determining inability to perform or if there is a cognitive impairment.

The six ADLs are:

1. Bathing
2. Eating
3. Dressing
4. Using the bathroom
5. Continence
6. Moving from place to place

There is also an elimination period. This is the period of waiting time before a policy starts paying benefits. There are options from which to choose, which will affect the premiums. Benefits begin the day after a zero, 20, 30, 60, 90 or 100 day waiting period after entering a nursing home or for receiving other services provided such as hospice or respite care, care following a stay at the hospital or for training family members to be caregivers.

Other Common Services Provided for in Long-Term Care

In addition to ADLs, there are instrumental activities of daily living (IADLs) for which long-term care coverage can provide help.

These IADLs are:

1. Housework
2. Managing money
3. Taking medicines
4. Preparing for and cleaning up after meals
5. Grocery shopping
6. Shopping for clothing
7. Communication via the telephone or other devices
8. Pet care
9. Emergency alerts such as fire alarms

If you plan early, you are able to determine the best approach to this complex coverage that you will be glad exists when you need it. A blended approach allowing consumers to remain at home as long as possible delaying care in a facility may be a preferred option.

A facility-based service often does not give you the flexibility you would otherwise prefer.

Take the time to consult with a trusted and qualified agent who can help navigate all the issues surrounding this coverage, including comparing the rates and levels of coverage between carriers. Having your plans laid out in advance is a great comfort in getting on with your life’s work.

Use the FREE comparison tool below to start your search for insurance today!