WA Cares Fund (WA money grab) (student loan, to buy, income tax)

[leastprime]

Completed call to a wealth management firm in Issaquah. The main office is in Redmond.
Rep said that most of the insurance companies pulled out of WA in the last month and that they themselves can't find coverage.
Big A, had a cutoff deadline several weeks ago (Universal Life with LTCi rider).
LTCi insurance offering is >40 yo. No policy available for a 36 yo.
Look for some suits to contest this new law.

[PS90]

Originally Posted by leastprime

Completed call to a wealth management firm in Issaquah. The main office is in Redmond.
Rep said that most of the insurance companies pulled out of WA in the last month and that they themselves can't find coverage.
Big A, had a cutoff deadline several weeks ago (Universal Life with LTCi rider).
LTCi insurance offering is >40 yo. No policy available for a 36 yo.
Look for some suits to contest this new law.

Yes, that's roughly what I was told as well. The only real option is to add a long-term care rider to Whole life insurance. They are not offered as a rider to Term life insurance or any other policy.

But Whole life insurance is life insurance that pays out when you die, no matter what. So, since the insurance company knows that they WILL have to pay, those policies are ridiculously expensive.

So that's not an option to most people.

[leastprime]

^ Whole Life is being offered by DS's benefit company. Application guaranteed issue Deadline, is Friday afternoon.
$17,245 WholeLife @ $156/yr; ... $100,000 @$905/yr... $150,000 @$1,360/yr (detail devils not examined closely)
vs
approx $812/yr using state's LTCi plan.

DS doesn't need LI since he has enough assets to pay for LTC. He has privately purchased term LI and whatever LI from his company.
He does understand the concept of Insurance where the majority pays for the minority.

For comparison, we parents have LTCi, ~250K coverage each (1095 days @~$220/day) for $1750/yr (x2). Age 72. Policy since 2002 with 4 to 6 rate increased to today's rate.

[PS90]

Originally Posted by leastprime

^ Whole Life is being offered by DS's benefit company. Application guaranteed issue Deadline, is Friday afternoon.
$17,245 WholeLife @ $156/yr; ... $100,000 @$905/yr... $150,000 @$1,360/yr (detail devils not examined closely)
vs
approx $812/yr using state's LTCi plan.

DS doesn't need LI since he has enough assets to pay for LTC. He has privately purchased term LI and whatever LI from his company.
He does understand the concept of Insurance where the majority pays for the minority.

For comparison, we parents have LTCi, ~250K coverage each (1095 days @~$220/day) for $1750/yr (x2). Age 72. Policy since 2002 with 4 to 6 rate increased to today's rate.

Are those numbers including the LTC rider? Or not?

[leastprime]

^Not.
We have stand alone LTCi policies. with 6(?) month deductible.
The trouble was that LTCi policies were under priced and those of us who bought, will hold the insurance to the very end.
If you have ever cared for a family member, you will understand the cost in dollars and mental wellbeing not only for the family member but to the caregiver.

It takes 4 parents to raise children one set of husband and wife. And that couple will produce <1.4 children
It will take that one couple to care for 4 grandparents.
Assuming perfect ideal families.

[rkcarguy]

I'm glad someone posted this up, or I was going to (even the money grab part-because that is what it is).
I am not in the 6-figure income group and things like this (State policies) add up and eat into what has become a very small amount of disposable income. Higher property taxes, higher auto insurance rates, higher car tabs, higher excise taxes, cell phone taxes, gas taxes, on and on and on and on....
I hope it gets challenged and tossed.


"If you have ever cared for a family member, you will understand the cost in dollars and mental well being not only for the family member but to the caregiver."
I realize this, and also realize that the "maximum benefit" amount of $36,500 is a hot dog down a hungry black lab, and won't even come close to providing any long term assistance/care.

[leastprime]

"$35,500" may be enough of a hot dog to keep the wolf happy.
add in SS at $10,000 +/- , and the average stay in a residential care facility is < 12 month.
vs
whatever $ contributed in today's welfare state.

[kavm]

Originally Posted by leastprime

Completed call to a wealth management firm in Issaquah. The main office is in Redmond.
Rep said that most of the insurance companies pulled out of WA in the last month and that they themselves can't find coverage.
Big A, had a cutoff deadline several weeks ago (Universal Life with LTCi rider).
LTCi insurance offering is >40 yo. No policy available for a 36 yo.
Look for some suits to contest this new law.

Interesting. What is the reason that the insurance companies pulled out of WA (LTC insurance space, I presume)?

We are not based in WA but it is on our list of possible retirement locations. We have LTC insurance but not sure what happens to it when one moves states.

Thanks for sharing.

[jabogitlu]

Originally Posted by kavm

Interesting. What is the reason that the insurance companies pulled out of WA (LTC insurance space, I presume)?

We are not based in WA but it is on our list of possible retirement locations. We have LTC insurance but not sure what happens to it when one moves states.

Thanks for sharing.

I don't think they have 'pulled out' but rather placed a moratorium on issuing new policies with LTC riders until the dust settles from this new legislation.

[Pomelo]

Originally Posted by kavm

Interesting. What is the reason that the insurance companies pulled out of WA (LTC insurance space, I presume)?

We are not based in WA but it is on our list of possible retirement locations. We have LTC insurance but not sure what happens to it when one moves states.

Thanks for sharing.

Presumably, a very high proportion of people interested in purchasing LTC insurance right now from WA are going to cancel it as soon as they get the exemption from the tax, so it is not worth the labor costs for the insurance company to sell them the policies.