Understanding California Assembly Bill 567: The California Long-Term Care Tax




California Assembly Bill 567, the California Long-Term Care Tax, serves as a crucial catalyst in addressing the state’s growing long-term care needs. While the tax aims to improve access to care services, it’s equally essential for Californians to take proactive steps in securing their own long-term care coverage. Private insurance options like long-term care insurance and indexed universal life insurance with a Long-Term Care (LTC) rider provide individuals with personalized and comprehensive solutions, ensuring financial security and peace of mind during their golden years.

AB 567: Strengthening Long-Term Care Services


  • Dedicated Funding for Enhanced Care: AB 567’s focus on funding for long-term care services signifies the pressing demand for quality care and support for seniors and vulnerable populations.
  • Supporting Family Caregivers: By providing respite care and training opportunities, the bill acknowledges the invaluable contribution of family caregivers and aims to alleviate their burdens.
  • Emphasizing Home and Community-Based Care: The tax prioritizes expanding home and community-based care options, enabling individuals to receive care in familiar environments.
  • Encouraging Proactive Planning: AB 567 highlights the importance of planning for long-term care needs and fosters awareness about potential solutions.

The Importance of Personal Long-Term Care Coverage


  • Addressing Individual Needs: Private long-term care insurance and indexed universal life insurance with an LTC rider offer tailored solutions to suit an individual’s specific long-term care requirements.
  • Financial Preparedness: Planning with private insurance options enables Californians to secure their financial future, safeguarding assets from the potential high costs of long-term care services.
  • Flexibility and Control: Private insurance grants policyholders the freedom to choose care providers and settings, providing greater control over their care journey.
  • Complementary Coverage: While AB 567 contributes to strengthening care services, private insurance acts as an additional layer of protection, complementing the state’s initiatives.
  • Protection for Loved Ones: Having personal long-term care coverage alleviates the burden on family members, ensuring they are not financially responsible for the policyholder’s care needs.

Alternatives to Pay California Long-Term Care Tax


While California Assembly Bill 567 aims to improve long-term care services, some individuals might find that it does not align with their specific needs or preferences. Paying the state long-term care tax may not be the most suitable option for everyone. Opting for private long-term care insurance with a life insurance LTC rider offers more flexibility and control over coverage. With a personalized insurance plan, individuals can tailor their policies to suit their unique circumstances and have the peace of mind that their long-term care needs are adequately addressed. Additionally, life insurance with an LTC rider provides the potential for cash value accumulation and death benefit protection, offering an added layer of financial security for loved ones. Evaluating and comparing various insurance options will empower Californians to make informed decisions and ensure their long-term care strategy best suits their individual requirements.

Indexed Universal Life Insurance with LTC Rider


  • Dual Benefits: Indexed universal life insurance not only provides a death benefit but also includes a Long-Term Care (LTC) rider, offering financial support for long-term care expenses if needed.
  • Cash Value Accumulation: IUL policies build cash value over time, which can be accessed to fund long-term care needs or supplement retirement income.
  • Tax Advantages: Policyholders may enjoy tax-free withdrawals from the cash value to cover qualified long-term care expenses.
  • Flexibility and Control: IUL policies provide flexibility in premium payments and allow policyholders to adjust their coverage to adapt to changing circumstances.



California Assembly Bill 567 is a crucial step towards enhancing long-term care services in the state, addressing the needs of an aging population. However, Californians should also take charge of their future by considering private long-term care insurance or indexed universal life insurance with an LTC rider. These personalized insurance solutions offer tailored coverage, financial security, and greater control over long-term care decisions. By proactively planning for long-term care, individuals can secure their well-being and ensure that they are prepared for whatever the future may hold.