The Texas Department of Insurance (TDI) has the authority to approve or disapprove long-term care insurance premium rate increases. If a rate increase is approved, companies must provide consumers with notice of the rate increase 45-days prior to the date the increased premium is due. Companies must also provide consumers with contingent nonforfeiture benefits. A contingent nonforfeiture benefit provides the policyholder protection if he or she is not able to pay the increased premium. The benefit allows the policyholder to either choose a reduced benefit amount to prevent premium increases or to convert the policy to a paid-up status.
In 2007, Texas created the Texas Long-Term Care Partnership giving Texans incentives and tools to help plan for long-term care needs. The partnership is a joint effort between private insurers and the state. Partnership policies have an asset disregard (gives the consumer the ability to retain assets without “spending down” in order to qualify for Medicaid), inflation protection, tax benefits and reciprocity between other states. For more information, calculators, and assessment tools visit www.OwnYourFutureTexas.org.
You may find the following TDI information helpful as you shop for long-term care insurance: