No. LTC insurance requires medical underwriting, and cognitive impairment is a disqualifying condition for new policies. Once a parent has a dementia diagnosis, LTC insurance is no longer available to them. This is why the ideal time to purchase coverage is in one’s 50s to early 60s, before age-related health conditions begin to affect underwriting.

Hybrid policies combine life insurance or an annuity with a long-term care benefit. If LTC care is never needed, the policy pays a death benefit to heirs — unlike traditional LTC insurance, where premiums are “lost” if care is never needed. Hybrid policies often appeal to people who are uncomfortable with the “use it or lose it” nature of traditional LTC insurance, though they typically require a larger upfront premium or lump sum.

No. Legitimate Medicaid planning uses legal strategies permitted under federal and state law to restructure assets — paying off debts, making allowed purchases, establishing certain trusts, or timing asset transfers properly outside the look-back period. Fraudulent concealment of assets is illegal and can result in application denial. An elder law attorney who specializes in Texas Medicaid planning works within the law to maximize the assets that can be legally protected.

Texas participates in the Medicaid Partnership Program, which allows LTC insurance policyholders to protect a dollar of assets from Medicaid eligibility requirements for every dollar the LTC insurance policy pays in benefits. This bridges LTC insurance and Medicaid planning — a person with a Partnership-qualified LTC policy can eventually apply for Medicaid while retaining more assets than would otherwise be allowed. Ask an insurance advisor specifically about Partnership-certified policies.