The following considerations offer our beliefs and perspectives about what best interests and long-term benefits can a life insurance planning provide for individuals, families, and business owners.

Insurance Planning: Life Insurance; Disability Insurance; Long-Term Care Planning

How Can You Benefit from Life Insurance Strategies?

1. Using Life Insurance in Tax-Free Retirement Supplement Income Planning (RSIP)
2. Combining face-value benefit and living benefits for chronic or terminal illness
3. Developing Estate Planning legacy strategies — 3 year rule applies, face value for potential estate tax to avoid fire sale
4. Applying protection and potential return of paid premiums
5. Granting single parent, portable and convertible coverage
6. Preapring protection for aging needs with Long-Term Care rider
7. Providing income protection for dual-income households life-style
8. Protecting paychecks / incomes
9. Supplying education plan funding from life insurance on parents
10. Offering small business / family-owned business protection
11. Employing advantages of uncorrelation between Life Insurance and the market
12. Serving as a mortality hedge

Long-Term Care Insurance

Washington State Cares Fund

• Gov. Inslee delays start of Washington’s new long-term care tax [from KING-TV, 12/17/21]
• What is going on with the WA State New Employee Payroll Tax Law for Long-Term Care Benefits? [Washington State Hospital Association, 6/3/21]
• What are WA State Long-Term Services and Supports (LTSS) rules? [Washington State Dept. of Social and Health Services]

You may like to explore to learn more information about WA Cares Fund.

Qualifications

Long-term care (LTC) insurance, according to Washington state law, is an insurance policy, contract or rider that provides coverage for at least 12 consecutive months to an insured person if they experience a debilitating prolonged illness or disability. LTC insurance typically covers the following types of services if they’re provided in a setting other than a hospital’s acute care unit.

Resources from Washington State Insurance Commissioner:

• What qualifies as long-term care insurance?
• What riders qualify as long-term care insurance?
• What riders do not qualify as long-term care insurance?
• List of companies approved to sell long-term care insurance in Washington state.

Exemptions

Resources from WA Cares Fund:

• How to know if an exemption is right for you?
• Learn more about Applying for an exemption

Requirements

To apply for a permanent exemption, you must: 

• Have purchased a qualifying private long-term care insurance plan before Nov. 1, 2021. Learn more about what qualifies as a long-term care policy under state law.
• Be at least 18 years of age. 
• Submit an exemption application to the Employment Security Department (ESD). Exemption applications will be available starting Oct. 1, 2021. ESD can only accept exemption applications through Dec. 31, 2022.

Next steps 

ESD will review your application and notify you if you’re eligible for an exemption from WA Cares coverage.  

If your application is approved

You’ll get an exemption approval letter from ESD, at which point you’ll be:

• Expelled from the program with no option to re-enroll. 
• Disqualified from accessing WA Cares benefits in your lifetime. 
• Required to present your exemption approval letter to all current and future employers. If you fail to present your ESD approval letter, employers will withhold non-refundable WA Cares premiums. 

Exemptions will take effect the quarter after your application is approved. APPLY FOR AN EXEMPTION

How much life insurance do I need?

It’s not really about how much life insurance you need. It’s how much money your family will need after you’re gone.

We’re here to help you to design and make important decisions about insurance planning to protect your loved ones.

The right level of coverage

When buying a life insurance policy, it’s important to choose the right amount of coverage. You don’t want too much, paying for protection you don’t need. Nor do you want to have too little, leaving your loved ones under-protected.

Determine how much life insurance you need

There are two common methods for calculating the amount of life insurance coverage you should carry.

1. The “lump sum need” method calculates the amount needed to pay:

• Outstanding debts
• Funeral expenses
• Taxes
• Household expenses
• Emergency needs
• Educational costs

2. The “income replacement” method calculates the amount needed to replace a percentage of your income for a specific number of years, usually until your youngest child is out of college or until your mortgage is paid off.

In addition to these two methods, you may want to consider other needs. For example, would you want to provide the financial means so your spouse wouldn’t have to work for the first year if you will not be around to provide income any more.

Calculate future spending

In determining your family’s future financial needs, remember that you don’t have to provide 100% of the income that will be needed. For instance, if you’re planning to provide $100,000 for your child’s college tuition in 15 years, you don’t need $100,000 now – you need an amount that will potentially grow to $100,000 by the time college starts, many time it also needs to take both economic and educational inflation into account.

Having your policy’s cash value potentially grow over the years to cover future expenses is one big advantage of permanent life insurance.

Life insurance coverage calculator

Please feel free to use our insurance planning tool, link to Nationwide life insurance company, to find the right amount for your budget and your peace of mind.

Zion is a fiduciary advisor, meaning we are legally authorized and required to provide objective, conflict-free guidance to help businesses meet their legal responsibilities under ERISA. Please contact us for an evaluation and analysis for which retirement plan is the most suitable long-term plan for you and your business.

Ready to take the next step?

Determining the right insurance coverage suitable for your needs is an important decision. A professional producer can analyze how changing economic and personal situations may affect you, giving you timely financial information and peace of mind – which ultimately helps you select the investments that fit your needs.

Our risk management using life insurance planning and services include:

• Plan design review
• Life insurance options selection
• Full, integrated back-office support
• Cost containment
• Plan compliance

We also provide comprehensive participant support, including ongoing education and practical support for employees. From enrollment meetings to educational seminars to phone support, we strive to help your employees prepare for a secure, comfortable retirement.

DISCLAIMER: Note that Per WAC 284-23-240 (3) compliance requirement, Mr. Wen-Liang Huang is doing insurance business as an insurance producer under the name of Wen-Liang Huang and IS NOT doing business as (DBA) Zion Financial Planning, LLC.