Key Takeaways
- Texas requires a 10-day free look period for disability insurance policies
- Texas participates in the Long-Term Care Partnership Program for Medicaid asset protection
- LTC policies must offer inflation protection and nonforfeiture benefit options
- Producers must complete 8 hours of LTC-specific training to sell LTC insurance
- Disability policies must include standard provisions like grace period and reinstatement
Last updated: January 2026
Texas Disability and Long-Term Care Insurance
Texas has specific regulations for disability income insurance and long-term care insurance.
Disability Income Insurance
Free Look Period
Texas requires a 10-day free look period for disability insurance:
- Policyholder can return for full premium refund
- Begins when policy is delivered
- Applies to individual policies
Required Policy Provisions
Texas disability policies must include:
| Provision | Requirement |
|---|---|
| Grace Period | Minimum 31 days for annual premium |
| Reinstatement | Must allow reinstatement |
| Notice of Claim | 20 days after loss begins |
| Proof of Loss | 90 days after end of period |
| Time to Pay Claims | Immediately upon receipt of proof |
| Legal Actions | Not before 60 days after proof |
Definition of Disability
Policies must clearly define disability:
- Own occupation - Cannot perform own job
- Any occupation - Cannot perform any job
- Split definition - Own occ for initial period, then any occ
Long-Term Care Insurance
Free Look Period
Texas requires a 30-day free look for LTC policies:
- Can return policy for full refund
- Applies to all individual LTC policies
- Begins when policy delivered
Required Provisions
| Provision | Requirement |
|---|---|
| Renewability | Must be guaranteed renewable |
| Pre-existing Conditions | Maximum 6-month look-back |
| Benefit Triggers | ADL impairment or cognitive impairment |
| Inflation Protection | Must offer option |
| Nonforfeiture | Must offer option |
Texas Partnership Program
Texas participates in the Long-Term Care Partnership Program:
How It Works
- Purchase a Partnership-qualified LTC policy
- Receive care covered by the policy
- If benefits exhaust, apply for Medicaid
- Asset protection - Keep assets equal to benefits received
Example
| Without Partnership | With Partnership |
|---|---|
| Spend down to $2,000 | Protect assets up to benefits paid |
| May lose home equity | Enhanced asset protection |
| Standard Medicaid rules | Special Medicaid rules |
Producer Training Requirements
To sell LTC insurance in Texas:
- Complete 8 hours of LTC-specific training
- Training must be before first sale
- Ongoing CE requirements for LTC
- Must complete before license renewal
Test Your Knowledge
How many hours of training must a producer complete to sell long-term care insurance in Texas?
A
B
C
D
Test Your Knowledge
What is the primary benefit of the Texas Long-Term Care Partnership Program?
A
B
C
D