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. Updated: June 10, 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.

ONLY CALL THE ASSOCIATION FOR INSURANCE PRICES (please) IF:
1. You are under age 40 and your annual salary is $200,000 or more.
2. You are age 40 or older and your annual salary is $150,000 or more.
3. You are age 50 or older and decided this is the time to investigate long-term care insurance.
4. AND you have been to the doctor within the past year for a physical examination.
Insurance companies have set minimum levels of insurance protrection for Washington residents.


QUICK ANSWERS TO COMMON QUESTIONS

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SHOULD I READ MORE ON THIS PAGE? YES, after reading the 4 criteria above.

WHY DOES MY SALARY MATTER? If you earn less that the amounts shown above, the new tax will cost you less than the minimal levels of long-term care insurance now required by insurers for Washington residents.

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 can indeed be less than the tax. We give some examples below. Insurance costs are based on your age, your health and how much coverage you choose to buy.

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.

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If you want to speak with a professional long-term care insurance specialist, call the Association at 818-597-3227. 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 YOUR SALARY IS HIGH - THEN IT PAYS TO COMPARE LTC INSURANCE

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

The Washington State program provides MINIMAL benefits (about $36,000 of home care benefits).

Private long-term care insurance will provide substantially more.

Some private LTC insurance will allow you to get your money back.

Currently traditional long-term care insurance is ONLY available for Washington residents ages 40-plus.

For Washington residents under age 40 there are a variety of life insurance policies with long-term care insurance benefits that qualify for the Washington exemption. They have benefits worth considering:
1. You get life insurance coverage of significant value.
2. Many policies will offer money back in the future.
3. You do get LTC benefits should you ever need them,

COST FOR PRIVATE LONG-TERM CARE INSURANCE

Numbers shown are rough examples for Washington residents (basic minimal coverage NOW required by private LTC insurers). This is what you should expect to pay for LTC insurance that will qualify you to be EXEMPT from the Washington tax.

Age 30 Male:
$950-per-year for a $100,000 death benefit / $100,000 LTC benefit.

Age 30 Female:
$850-per-year for a $100,000 death benefit / $100,000 LTC benefit.

Age 35 Male:
$1,100-per-year for a $100,000 death benefit / $100,000 LTC benefit.

Age 35 Female:
$975-per-year for a $100,000 death benefit / $100,000 LTC benefit.


Age 40 Male:
$900-per-year for a $75,000 traditional LTC benefit.

Age 40 Female:
$1,175-per-year for a $75,000 traditional LTC benefit.

Age 45 Male:
$1,000-per-year for a $75,000 traditional LTC benefit.

Age 45 Female:
$1,300-per-year for a $75,000 traditional LTC benefit.

Age 50 Male:
$1,100-per-year for a $75,000 traditional LTC benefit.

Age 50 Female:
$1,700-per-year for a $75,000 traditional LTC benefit.

These prices are approximations based on good health at time of application. They reflect the requirements of one of the leading LTC insurance companies that requires a minimum $3,000-per-month benefit with a 3% inflation growth option.


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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.