Washington State Long-Term Care Insurance Options

Your Current Options - The Washington State Tax versus Private LTC Insurance

Effective August 1, 2021
Insurance companies have imposed significant limitations and these are changing regularly. Please read the following based on the latest information from leading LTC insurance agents and brokers helping Washington consumrs.

ONLY CALL THE ASSOCIATION IF YOU MEET THE CRITERIA BELOW
Call 818-597-3205
- After hours you can leave the following on our voicemail: (Name, Phone Number, Age(s) and Salary(ies).
If you meet the criteria, your information will be shared WITH ONLY ONE long-term care insurance specialist.
We regret that we are unable to answer the volume of individual questions. Thank you for understanding.


DEADLINES: Several insurance companies have now said that they will NOT BE ABLE TO MEET WASHINGTON's NOV. 1 DEADLINE IF APPLICATIONS ARE SUBMITTED AFTER AUGUST 6th.

CRITERIA: UNDER AGE 40 -- Be prepared to buy a Life insurance + LTC policy. Minimum annual premium will be about $1,500 (single), $2,000 (couple). Your annual income should be $100,000 (AND you should see value in having better coverage OR might move out of WA). Over $150,000+ if your only goal is avoiding the tax.

CRITERIA: OVER AGE 40 -- Be prepared that minimum annual premiums will be $2,000 and UP a year depending on what policy provisions you pick.
WHO SHOULD CALL THE ASSOCIATION TO CONNECT WITH A SPECIALIST?
Your current annual income is around $200,000 (or more).
You realize now would be a good time to get some LTC insurance.
You want better benefits than the State plan.
You are likely going to move outside of WA (where the State plan gives you ) benefits.
You are willing and able to write a check for 1 year's premium.


FREQUENTLY ASKED QUESTIONS - UPDATED AUGUST 1, 2021

WAIT, I READ NOVEMBER 1st IS THE DEADLINE!
That is the State deadline. Insurance companies need time to proces applications, do health checks, etc. Many have already stopped accepting applications from Washington residents. Others are getting ready to stop accepting applications. If you are interested, be prepared to apply when speaking with a long-term care insurance specialist.

ARE THE INSURANCE COMPANIES RAISING RATES TO TAKE ADVANTAGE?
No. Policy premiums are regulated by the State and haven't changed. However, the insurance companies are placing minimum levels of coverage that they require.

I EARN LESS THAN $200,000, AM I OUT OF INSURANCE OPTIONS?
Probably at this point, yes. The State tax on $200,000 will be about $1,100 a year. The minimum cost for insurance (available in Washington) will be $2,000 and quite likely more. Unless you are prepared to pay those amounts, it's likely too late to secure an exemption. That said, if you have access to an approved plan through your work, or some agent has offered you an option, definitely consider it.

HA! I'LL APPLY AND DROP THE COVERAGE AFTER I SECURE THE TAX EXEMPTION.
Insurers anticipate that and that's why they have imposed limits. And, don't think the State can't amend the rules and check who has their coverage in force and who doesn't.

I SPOKE TO AN INSURANCE AGENT WHO OFFERED ME AN OPTION.
Great. First, we invite insurance agents and insurers to keep us updated. Make sure you get IN WRITING that the policy has met the State's requirement for the exemption. Verbal statements have no value when it comes to insurance.










Prior information: The following information below is no longer applicable.

Younger Than 40? - There are some linked benefit products that can qualify for the exemption. They cost more. If your income is generally LESS THAN $200,000, the new Washington tax will likely be less costly (for those simply looking to avoid the tax).

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 / $200,000 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

washington-state-long-term-care-insurance-costs

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.

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

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:
$800-per-year for a $75,000 traditional LTC benefit.

Age 40 Female:
$1,300-per-year for a $75,000 traditional LTC benefit.

Age 50 Male:
$1,300-per-year for a $75,000 traditional LTC benefit.

Age 50 Female:
$2,100-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.


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.