Advisors Blog

GBS News: WA State LTC Update | DI Sales Opportunities | Fixed Index Annuity | and more

Published on June 07, 2021


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New LTC Legislation and Opportunities in State of Washington

The soon-to-be-enacted "Long Term Services and Trust Act" will impose a .58% annual tax on Washington state's workforce to fund one year of future LTC benefits (non-portable and only available if still living in WA). The only way to "opt-out" and avoid paying this tax is to show proof of existing coverage.

While the Trust Act could be beneficial for low-to-middle income earners, it negatively impacts those highly compensated individuals who will pay a much larger, disproportionate amount for the same, minimal benefit.

Click below for a list of available solutions we can help with. We encourage you to review your clients' Life Insurance Portfolio and identify clients who have a need for Long-Term Care protection to avoid paying state tax.


NGL EssentialLTC Washington State Trust Act Update

As a result of the recently passed Washington Cares Fund, National Guardian Life Insurance Company (NGL) is beginning to see an influx of Washington LTC new business applications containing minimum benefit limits to avoid the payroll tax rather than developing appropriate LTC protection.

Effective immediately, NGL is instituting new policy minimum benefits, underwriting requirements and administrative changes in Washington State only. To provide coverage similar to the benefits available through the Washington Cares Fund:

  • The minimum Daily Benefit Amount available is $100. Applications with $50 - $90 Daily Benefit Amounts will not be accepted.
  • The applicant must choose an inflation option. Applications with no inflation will not be accepted.
  • Facility only applications will not be accepted.

The illustration and E-APP systems will be updated to not allow benefits below the minimums described above. An implementation date for this system update has yet to be decided, but the benefit minimums are effective immediately.


Are you overlooking DI sales opportunities and leaving your clients’ income unprotected?

You’ve insured the life, but don’t forget to insure the INCOME. The chance of becoming disabled is actually higher than the chance of death for people in their working years. GBS can provide access to carriers that offer Individual Disability Insurance (IDI) policies. IDI is an excellent solution for those who either don’t have Group Long Term Disability (LTD), or for those who need to supplement it to ensure they have adequate income protection. We can help facilitate these sales even if you are not a DI expert.

Get started by sharing the attached brochure with your clients and using our GBS Disability Income Fact Finder.


Planning Made Simple - Benefits of a Fixed Index Annuity

The major benefits of annuities lie in their stability, regardless of market volatility, with an added bonus of being tax-deferred. Our annuity specialists take the complexity out of the process, and will guide you through the sales process from beginning to end.

We can help you with:

  • Retirement Challenges in the Current Interest Rate Environment.
  • An Attractive Alternative to Annuitization.
  • Protected Retirement Income IRR: More Than Risk Mitigation.
  • Annuity Reviews: Is Your Client’s Annuity Where It Needs to Be?
  • and more!

To get started, you can run annuity rates on Annuity Rate Watch by logging on to our GBSLife Agent Portal or click below for more information.


5 Clever and Differentiating Lead Generation Tactics to Try

What do videos, success stories, and quizzes have in common? These clever lead generation tactics could be the key to generating new leads that could be converted into new policyholders for your insurance business. Check out these five lead generation ideas you can try today.




We at GBS Insurance thank you again for your business. For more information or insurance quote requests, please contact your brokerage manager or give us a call at (800) 473-5966.

For agent use only - not for use with the general public.

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21820 Burbank Blvd., Suite 301

Woodland Hills, CA 91367

Phone: (800) 473-5966

GBS Insurance and Financial Services, Inc. do not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

© 2021 Arthur J. Gallagher & Co. 




Webinar Invitation: How to Position LTC as a Retirement Planning Tool

Join us for a special webinar featuring Mutual of Omaha discussing how agents can position LTC as a retirement planning tool. We will be going over today's LTC changing market with real world statistics, how to start the conversation, tax favorability and more.


Tax Advantages for Business Long Term Care

There is a unique opportunity for C-Corps to offer LTC on a discretionary basis and receive significant tax deductions. The ideal case involves a closely-held business looking to benefit primarily the owners (and their spouses), or at most create a carve-out LTC plan for 20 or less executives or highly-compensated employees.  


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