Types of Long-Term Care Policies in Texas

Types of Long-Term Care Policies in Texas

In Texas, the most common benefits of a long-term care policy are nursing homes and assisted living care, home health care and adult day care. These types of services must be received in licensed nursing or assisted living facilities or through licensed home health or adult day care agencies.

There are several types of policies. You can buy an individual long-term care policy, group policy sponsored by your employer or a policy offered to members of associations or professional bodies. In some cases you may be covered by an adult family member's group long-term care policy.

Most of the policies of sold in Texas are individual policies. Most of these are sold through insurance agents, but some companies also sell by direct mail or telephone. They could come in two types namely, tax-qualified and non-tax qualified.

In a tax-qualified LTC policy, the individual may be able to deduct part of the premium taxes as a medical expense. Benefits paid out by a qualified policy will generally not be taxable as income. But beforehand, it is recommendable to consult first from an accountant or tax advisor the tax implications of purchasing and LTCi. Also, to claim a tax deduction for LTC premium payments, out-of-pocket medical expenses, including the LTC premiums, must exceed 7.5 percent of your adjusted gross income. The maximum amount of long-term care premium deducted depends on your age at the end of each fiscal year.

In a non tax-qualified LTC policy, the benefits paid under a non tax-qualified plan may be considered taxable income. It can increase tax liability and reduce the value of benefits. Thus, before buying an LTC policy, it is highly advisable to seek professional consultation. Also, the minimum "benefit eligibility" conditions for tax qualified plans are the inability to perform two of six ADLs or cognitive impairment. However, some programs may offer eligibility benefits cheaper. For example, the policy might require only the inability to perform one of the six ADSL to qualify.

Moreover, it is also important to know what services are covered by your insurance policy long term care. The type of facility and kind of care are also factors in determining whether insurance provider will pay for you care necessities.

LTC policies in TX may pay for several types of care in licensed facilities, or regulatory agencies. Some cover skilled care and personal care assistance in your home. Many also pay for day care in day care for adults, while other policies also offer other forms of coverage, such as hospice and respite care. But, bear in mind, TX law allows LTC policies to exclude coverage for certain conditions, either completely or for a limited time.

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