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Texas Department of Insurance
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Are your long-term care insurance rates going up?

Across the nation, people with certain long-term care insurance are getting notices of large rate increases. This can lead to difficult decisions about whether to cut benefits, drop the policy, or pay much more than you expected.

Why are long-term care rates increasing?

People are living longer than when insurers set the rates for these policies. This means insurers have to pay out more in claims than they had estimated. Low interest rates also mean insurers have less money than they expected to pay those claims. This has caused many insurers to increase rates to be able to pay claims in the future.

What if I can’t afford the increase?

Talk to your agent or insurer about your options. When the Texas Department of Insurance approves a long-term care rate increase, we require the insurer to let you adjust your benefits to help offset the cost of the increase. Depending on how long you’ve had your policy, you may be able to get some benefits even if you can no longer pay for the policy. You also may want to talk to a financial adviser about your options.

Will my rates increase again?

There are no guarantees, but Texas requires long-term care insurers to certify that they don’t expect more rate increases in the future.

What happens if my long-term care insurer goes out business?

The non-profit Texas Life and Health Guaranty Association will take over your policy, but you may have much lower limits on your coverage.

Questions? Call us at 800-252-3439.

Last updated: 5/3/2018