Washington State Long-Term Care Insurance Options

We'd Like To Share Your Options - The Washington State Tax versus Private LTC Insurance

The following was written by Jesse Slome, director of the American Association for Long-Term Care Insurance. It is not intended as tax nor planning advice. Posted: April 2021

Employers: Feel Free To Share This Page With Employees

This webpage is designed to help individuals and employees decide IF PRIVATE LONG-TERM CARE INSURANCE is worth considering as a way to be EXEMPT from the new tax that will begin January 2022.


QUICK ANSWERS TO COMMON QUESTIONS

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Who approved the new tax? Your state lawmakers created this program and the Governor signed it into law. Click This Link To Learn More

Isn't there any way to avoid the new tax? YES. Buying long-term care insurance is a way to be exempt from the new tax. BUT THAT IS AN OPTION ONLY FOR CERTAIN PEOPLE and we share some insights below.

What will private long-term care insurance cost me? The cost could indeed be less than the tax. However, insurance companies generally look for larger policies. And, insurance agents typically look to offer benefits that will cost you $100/month or more. We spell out some costs below.

When Do I need to decide? If you want the exemption we strongly recommend you apply BEFORE SEPTEMBER 1, 2021. It can take 60-to-90 days for an insurer to approve and issue your policy.

If the new tax will cost me less than $40/month should I consider long-term care insurance? If you earn $75,000 or less - you can really STOP READING HERE. Private long-term care insurance will cost the typical man $100-per-month (and up). Women pay more than men.

SHOULD YOU SPEND TIME CONSIDERING PRIVATE LONG-TERM CARE INSURANCE?

IF YOU CAN ANSWER YES TO ONE OR MORE OF THESE QUESTIONS, THEN "YES" CALL US

(1a) "YES" - If you are AGE 40 (or under) and earn MORE than $100,000 a year (per-individual).

(1b) "YES" - If you are OVER AGE 40 earn MORE than $150,000 a year (per-individual).

(2) "YES" - If you are AGE 50+ & know you will move out of Washington State (+ you earn more than $100,000).

(3) "YES" - If you are willing to pay the STANDARD monthly premiums shown below for LTC protection. Find Premium Prices Below

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If you answered YES" to Questions (1a or 1b) and (3) then call the Association at 818-597-3227 and we will connect you with a Washington long-term care insurance specialist.

It will take between 20 and 40 minutes to complete the application for insurance with the agent.

IF YOU ANSWERED "YES" - ONLY THEN IT PAYS TO COMPARE

Here's What You Can Expect To Pay - Here's What to Do NEXT

The cost of long-term care insurance is based on what policy provisions you pick. In the chart below we show a MINIMAL policy and what we'll call a STANDARD plan.

Insurance companies don't like the MINIMAL policies. So, while they offer them, getting one can be difficult.

The Washington State program provides MINIMAL benefits. Private long-term care insurance will provide substantially more. That's why the STANDARD costs we show are MORE THAN THE NEW TAX. If you want better coverage and can afford the amounts shown, THEN IT DOES PAY TO CONSIDER PRIVATE INSURANCE - BOTH FOR THE BETTER COVERAGE AND THE WAY TO EXEMPT YOURSELF FROM THE TAX.

COST FOR PRIVATE LONG-TERM CARE INSURANCE

Age 35 Male / Female
MINIMAL* $17/month (Male) / $24/month Female
STANDARD * $77/month (Male) / $113/month Female

Age 40 Male / Female
MINIMAL* $17/month (Male) / $24/month Female
STANDARD * $80/month (Male) / $117/month Female

Age 45 Male / Female
MINIMAL* $19/month (Male) / $27/month Female
STANDARD * $85/month (Male) / $130/month Female

Age 50 Male / Female
MINIMAL* $21/month (Male) / $30/month Female
STANDARD * $95/month (Male) / $145/month Female

Age 55 Male / Female
MINIMAL* $24/month (Male) / $34/month Female
STANDARD * $105/month (Male) / $162/month Female

* "MINIMAL" POLICY BENEFITS DEFINED
Monthly benefit = $1,600
Benefit Period = 2 Years
Inflation Growth Option = NONE
Elimination Period = 365 Days
While offered you likely will not find an agent willing to offer this.

* STANDARD POLICY BENEFITS DEFINED
Monthly benefit = $3,000
Benefit Period = 2 Years
Inflation Growth Option = 3% Compounded Annually
Elimination Period = 90 Days
Many agents will advocate for more coverage. That is, of course, entirely up to you.


washington-state-long-term-care-insurance-quote

If you are ready to apply for long-term care insurance, Call the American Association for Long-Term care Insurance at 818-597-3227

We will connect you with one Washington State LTC Specialist.