It could be more than a standalone LTCI policy, but unless you pay 25% more for a return of premium rider on that standalone policy, if you don't use the benefit, you lose it. With the hybrid policy, if you don't use the LTC benefit, at least the money goes to your intended beneficiaries.Marseille07 wrote: ↑Mon Jul 26, 2021 4:07 pmYeah, to the original question, I guess we'd be looking for the cheapest option out there. I don't know the pricing of UL + rider, but it might be more expensive than a standalone LTCI policy. I'm still gathering agents; so far NGL offering $2000/year minimum and I'm looking for other options.
Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
My mega corp came through with a plan from Trustmark that goes into effect Oct 1st.
It's a $25k UL with a LTC rider. Price is adjusted for age, but is far cheaper than anything I could find privately.
It's a $25k UL with a LTC rider. Price is adjusted for age, but is far cheaper than anything I could find privately.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
How is $25k qualified for opt out? I think the min is $36,500.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
It's a $25k life insurance policy. With that policy, the monthly benefit amount is $1000. Which is also below the state plan.
But, nothing so far has said there has to be a minimum coverage amount to get an exemption.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I don't know how authoritative, but some sources say your coverage has to be better than the state plan to opt-out: https://www2.pugetsound.edu/files/resou ... loyees.pdftruenyer wrote: ↑Tue Jul 27, 2021 6:04 pmIt's a $25k life insurance policy. With that policy, the monthly benefit amount is $1000. Which is also below the state plan.
But, nothing so far has said there has to be a minimum coverage amount to get an exemption.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Nothing in the law says it has to be equal or better. This official OIC page makes *no* mention of minimum coverage amounts. https://www.insurance.wa.gov/what-quali ... -insuranceMarseille07 wrote: ↑Wed Jul 28, 2021 2:15 pmI don't know how authoritative, but some sources say your coverage has to be better than the state plan to opt-out: https://www2.pugetsound.edu/files/resou ... loyees.pdftruenyer wrote: ↑Tue Jul 27, 2021 6:04 pmIt's a $25k life insurance policy. With that policy, the monthly benefit amount is $1000. Which is also below the state plan.
But, nothing so far has said there has to be a minimum coverage amount to get an exemption.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
You do you, but it's one of those situations where it's wise to meet the state plan *in case* that's the agenda. I too can't find the minimum mentioned, but as I said I see multiple sources saying so.truenyer wrote: ↑Wed Jul 28, 2021 2:25 pm Nothing in the law says it has to be equal or better. This official OIC page makes *no* mention of minimum coverage amounts. https://www.insurance.wa.gov/what-quali ... -insurance
Since this is likely a one-time verification, I try to pass with flying colors than attempt to save $100 while potentially significantly hurting my chances.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I never said I wasn't (my planned coverage is above the state requirement). I'm just telling you what the *law* says.Marseille07 wrote: ↑Wed Jul 28, 2021 2:43 pmYou do you, but it's one of those situations where it's wise to meet the state plan *in case* that's the agenda. I too can't find the minimum mentioned, but as I said I see multiple sources saying so.truenyer wrote: ↑Wed Jul 28, 2021 2:25 pm Nothing in the law says it has to be equal or better. This official OIC page makes *no* mention of minimum coverage amounts. https://www.insurance.wa.gov/what-quali ... -insurance
Since this is likely a one-time verification, I try to pass with flying colors than attempt to save $100 while potentially significantly hurting my chances.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Thank you to everyone who has contributed to this thread!
I should have a policy in place shortly and will be ready to apply for an exemption 10/1 (won't that be an interesting day?).
I still have a hard time believing this is going to go into effect as is.
I should have a policy in place shortly and will be ready to apply for an exemption 10/1 (won't that be an interesting day?).
I still have a hard time believing this is going to go into effect as is.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Anyone have a crystal ball?
1) The state actuary recommended a tax of .70%, but they went with .58%
2) Voters voted down the bill that would allow the state to invest the fund in equities
3) The state was attempting to subsidize medicaid by making this a progressive tax, but all the high net worth folk have CPAs, financial advisors, insurance folks that most likely have opted them out. AMZN, MSFT, Expedia, Boeing, etc. brought in "group"/discounted individual policies to opt their people out
What is the committee going to recommend to our legislature to keep this thing solvent every 2 years? Lowering an already practically worthless benefit? Making the benefit even harder to access? Or, revising the revised code, and increasing the tax? Targeting high net worth folk, who drop their private policies after November 1, and auditing them?
1) The state actuary recommended a tax of .70%, but they went with .58%
2) Voters voted down the bill that would allow the state to invest the fund in equities
3) The state was attempting to subsidize medicaid by making this a progressive tax, but all the high net worth folk have CPAs, financial advisors, insurance folks that most likely have opted them out. AMZN, MSFT, Expedia, Boeing, etc. brought in "group"/discounted individual policies to opt their people out
What is the committee going to recommend to our legislature to keep this thing solvent every 2 years? Lowering an already practically worthless benefit? Making the benefit even harder to access? Or, revising the revised code, and increasing the tax? Targeting high net worth folk, who drop their private policies after November 1, and auditing them?
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
So... I'm fairly health conscious. Not long ago, I decided I was starting to drink more alcohol than I wanted to. Nothing major, no life crisis, just not satisfied with my lifestyle. Always looking to better myself, I got a RX for a medication to help reduce alcohol intake. I didn't think much of it, until I applied for LTC and learned I am basically blacklisted since I'm seen as someone with a substance abuse problem. I am now very worried I won't be able to get LTC to avoid this massive tax.
If anyone has any advice or suggestions, could you please PM me.
Thanks...
If anyone has any advice or suggestions, could you please PM me.
Thanks...
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Probably the only possibility for you, Chrischris, is an annuity with a long-term care rider. But, if you're under 40 you probably won't be able to buy one of them.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm So... I'm fairly health conscious. Not long ago, I decided I was starting to drink more alcohol than I wanted to. Nothing major, no life crisis, just not satisfied with my lifestyle. Always looking to better myself, I got a RX for a medication to help reduce alcohol intake. I didn't think much of it, until I applied for LTC and learned I am basically blacklisted since I'm seen as someone with a substance abuse problem. I am now very worried I won't be able to get LTC to avoid this massive tax.
If anyone has any advice or suggestions, could you please PM me.
Thanks...
A lot of Washingtonians are going to be surprised when they are declined for long-term care insurance. Long-term care insurance underwriting is the complete OPPOSITE of life insurance underwriting. And anyone who applies for a life/ltc hybrid will, with most companies, have to meet the LTC underwriting requirements AND the life insurance underwriting requirements.
That's why you shouldn't just apply for a policy with Joe Insurance Agent down the street. Most insurance agents don't understand long-term care insurance underwriting.
fyi... NY Life has some of the strictest underwriting standards in the long-term care insurance industry (and always has). One time I got someone approved for "super preferred" rates from Allianz (a long-term care insurer who had pretty strict underwriting). That same person was issued SUBSTANDARD by NY Life.
Wise Washingtonians are seeking out long-term care insurance SPECIALISTS because the underwriting hurdle is the real problem.
IF your employer is offering a guaranteed issue LTCi policy (or hybrid) TAKE IT!!!!!!
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
^all of thisWoW2012 wrote: ↑Thu Jul 29, 2021 10:49 pmProbably the only possibility for you, Chrischris, is an annuity with a long-term care rider. But, if you're under 40 you probably won't be able to buy one of them.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm So... I'm fairly health conscious. Not long ago, I decided I was starting to drink more alcohol than I wanted to. Nothing major, no life crisis, just not satisfied with my lifestyle. Always looking to better myself, I got a RX for a medication to help reduce alcohol intake. I didn't think much of it, until I applied for LTC and learned I am basically blacklisted since I'm seen as someone with a substance abuse problem. I am now very worried I won't be able to get LTC to avoid this massive tax.
If anyone has any advice or suggestions, could you please PM me.
Thanks...
A lot of Washingtonians are going to be surprised when they are declined for long-term care insurance. Long-term care insurance underwriting is the complete OPPOSITE of life insurance underwriting. And anyone who applies for a life/ltc hybrid will, with most companies, have to meet the LTC underwriting requirements AND the life insurance underwriting requirements.
That's why you shouldn't just apply for a policy with Joe Insurance Agent down the street. Most insurance agents don't understand long-term care insurance underwriting.
fyi... NY Life has some of the strictest underwriting standards in the long-term care insurance industry (and always has). One time I got someone approved for "super preferred" rates from Allianz (a long-term care insurer who had pretty strict underwriting). That same person was issued SUBSTANDARD by NY Life.
Wise Washingtonians are seeking out long-term care insurance SPECIALISTS because the underwriting hurdle is the real problem.
IF your employer is offering a guaranteed issue LTCi policy (or hybrid) TAKE IT!!!!!!
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
That’s going to be a decline with every life insurance company for at least a year especially if you are still drinking at all. I’m sure it’s a decline for traditional LTC too. If your employer is offering anything take it. Otherwise you may be another in a long list of people that can’t opt out because they can’t qualify for anything. I’m sure there will be legal challenges on those grounds and many others. Quite the mess.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm So... I'm fairly health conscious. Not long ago, I decided I was starting to drink more alcohol than I wanted to. Nothing major, no life crisis, just not satisfied with my lifestyle. Always looking to better myself, I got a RX for a medication to help reduce alcohol intake. I didn't think much of it, until I applied for LTC and learned I am basically blacklisted since I'm seen as someone with a substance abuse problem. I am now very worried I won't be able to get LTC to avoid this massive tax.
If anyone has any advice or suggestions, could you please PM me.
Thanks...
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Thanks. I just asked HR about my employer's LTCi / rider if any. I don't think they have anything but it'd be worth asking even if they don't.
Meeting with NYL tomorrow as well.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Nationwide sent out an email today stating that if you do not submit an application by August 6, your policy will likely not get approved before the November 1 deadline. if you have been waffling, apply immediately. As expected, they've had a massive influx of applications.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Fascinating thank you!WoW2012 wrote: ↑Thu Jul 29, 2021 10:49 pmProbably the only possibility for you, Chrischris, is an annuity with a long-term care rider. But, if you're under 40 you probably won't be able to buy one of them.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm So... I'm fairly health conscious. Not long ago, I decided I was starting to drink more alcohol than I wanted to. Nothing major, no life crisis, just not satisfied with my lifestyle. Always looking to better myself, I got a RX for a medication to help reduce alcohol intake. I didn't think much of it, until I applied for LTC and learned I am basically blacklisted since I'm seen as someone with a substance abuse problem. I am now very worried I won't be able to get LTC to avoid this massive tax.
If anyone has any advice or suggestions, could you please PM me.
Thanks...
A lot of Washingtonians are going to be surprised when they are declined for long-term care insurance. Long-term care insurance underwriting is the complete OPPOSITE of life insurance underwriting. And anyone who applies for a life/ltc hybrid will, with most companies, have to meet the LTC underwriting requirements AND the life insurance underwriting requirements.
That's why you shouldn't just apply for a policy with Joe Insurance Agent down the street. Most insurance agents don't understand long-term care insurance underwriting.
fyi... NY Life has some of the strictest underwriting standards in the long-term care insurance industry (and always has). One time I got someone approved for "super preferred" rates from Allianz (a long-term care insurer who had pretty strict underwriting). That same person was issued SUBSTANDARD by NY Life.
Wise Washingtonians are seeking out long-term care insurance SPECIALISTS because the underwriting hurdle is the real problem.
IF your employer is offering a guaranteed issue LTCi policy (or hybrid) TAKE IT!!!!!!
I went through the process of getting an NY Life policy and was approved. Thought it was no longer possible to get added to the work plan so had done this. It turns out the work plan added me as well, but didn't figure this out until recently. Over the length of the policy think the NY Life plan will have greater value (even if I cancel can get my premium back after 6yrs paying in).
The work policy seems to have less benefit than the state's own plan.
Was thinking to cancel the work plan, but am now wondering if maybe I should keep it in the rare even NY Life ejects me after the fact for some reason (thus jeopardizing opting out). Would be interested in your thoughts here
"Anyone who claims to understand quantum theory is either lying or crazy" -- Richard Feynman
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
For the annuity w/ LTC rider, you are also going to need to have about $28K lying around. . .WoW2012 wrote: ↑Thu Jul 29, 2021 10:49 pmProbably the only possibility for you, Chrischris, is an annuity with a long-term care rider. But, if you're under 40 you probably won't be able to buy one of them.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm So... I'm fairly health conscious. Not long ago, I decided I was starting to drink more alcohol than I wanted to. Nothing major, no life crisis, just not satisfied with my lifestyle. Always looking to better myself, I got a RX for a medication to help reduce alcohol intake. I didn't think much of it, until I applied for LTC and learned I am basically blacklisted since I'm seen as someone with a substance abuse problem. I am now very worried I won't be able to get LTC to avoid this massive tax.
If anyone has any advice or suggestions, could you please PM me.
Thanks...
A lot of Washingtonians are going to be surprised when they are declined for long-term care insurance. Long-term care insurance underwriting is the complete OPPOSITE of life insurance underwriting. And anyone who applies for a life/ltc hybrid will, with most companies, have to meet the LTC underwriting requirements AND the life insurance underwriting requirements.
That's why you shouldn't just apply for a policy with Joe Insurance Agent down the street. Most insurance agents don't understand long-term care insurance underwriting.
fyi... NY Life has some of the strictest underwriting standards in the long-term care insurance industry (and always has). One time I got someone approved for "super preferred" rates from Allianz (a long-term care insurer who had pretty strict underwriting). That same person was issued SUBSTANDARD by NY Life.
Wise Washingtonians are seeking out long-term care insurance SPECIALISTS because the underwriting hurdle is the real problem.
IF your employer is offering a guaranteed issue LTCi policy (or hybrid) TAKE IT!!!!!!
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Is it advisable to apply at a bunch of places in case some of them might not go through, or apply one at a time? I applied recently, but they might take 4~5 weeks to approve my application. If it doesn't go through then I'm pretty much screwed.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Not sure if already asked but I can't search the thread... this applies to only WA residents correct? I am a TX resident but work for a WA based employer.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
You should ask your employer. But it appears that you are included in this.stocknoob4111 wrote: ↑Fri Jul 30, 2021 6:12 pm Not sure if already asked but I can't search the thread... this applies to only WA residents correct? I am a TX resident but work for a WA based employer.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Massive? It's 0.58%. That's less than $100/month on a $200,000 salary. That's less than most people spend at Starbucks.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm I am now very worried I won't be able to get LTC to avoid this massive tax.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
TropikThunder wrote: ↑Fri Jul 30, 2021 7:38 pmMassive? It's 0.58%. Massive would be California's state income tax of 9.3% above $58k.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm I am now very worried I won't be able to get LTC to avoid this massive tax.
It's less than $100/month on a $200,000 annual salary. You may not get much in return for it, but that's less than most people spend at Starbucks.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Tech people earn more than 200K on a W-2 basis even if their base is 200K.TropikThunder wrote: ↑Fri Jul 30, 2021 7:38 pmMassive? It's 0.58%. That's less than $100/month on a $200,000 salary. That's less than most people spend at Starbucks.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm I am now very worried I won't be able to get LTC to avoid this massive tax.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
$200,000 was just an example. It's still not a "massive" tax.Marseille07 wrote: ↑Fri Jul 30, 2021 7:42 pmTech people earn more than 200K on a W-2 basis even if their base is 200K.TropikThunder wrote: ↑Fri Jul 30, 2021 7:38 pmMassive? It's 0.58%. That's less than $100/month on a $200,000 salary. That's less than most people spend at Starbucks.chrischris wrote: ↑Thu Jul 29, 2021 10:29 pm I am now very worried I won't be able to get LTC to avoid this massive tax.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I will check it, but as a TX resident I can't legally be subject to a program that is for WA residents since I am not eligible, that would not be legal in my view. There is no way I am going to accept a levy on my wages for a WA state program that I am not part of.
If this is a law I will just have to ask my employer to increase my wages my 0.58% or too bad I will just quit. Absolutely no way I will agree to this.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
You should check, but I don't think you're included, so long as your company is handling your taxes as a Texas resident (and they should be, if you have a Texas address on file with them).stocknoob4111 wrote: ↑Fri Jul 30, 2021 10:05 pmI will check it, but as a TX resident I can't legally be subject to a program that is for WA residents since I am not eligible, that would not be legal in my view. There is no way I am going to accept a levy on my wages for a WA state program that I am not part of.
If this is a law I will just have to ask my employer to increase my wages my 0.58% or too bad I will just quit. Absolutely no way I will agree to this.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Yeah, I will check it... I did some research online and it's not clear, some websites say if you're an employee out of state but "directed from Washington State" then you're subject to it. Other websites say it's only for WA residents.Marseille07 wrote: ↑Fri Jul 30, 2021 10:09 pm You should check, but I don't think you're included, so long as your company is handling your taxes as a Texas resident (and they should be, if you have a Texas address on file with them).
My paycheck has CA and TX in the states section and there isn't a reference to WA (CA because I started the job when I was a CA resident but then moved but it still has it in there for whatever reason it hasn't dropped off but I am not charged CA taxes).
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Didn’t read all the recents, but a couple of notes based on some conversations w providers/agents:
-employers can still create an employee benefit to address this, but must move quick (however new employees after deadline will still not be exempted)
-may have more success with a life+LTC but be aware that other +LTC are not necessarily eligible. (Disability+LTC was mentioned as not included as that is apparently a common Q)
Thanks to all for contributing to this thread. Even the cost of $580/yr on $100k simply buys a substandard plan assuming you have enough years of service to qualify.
-employers can still create an employee benefit to address this, but must move quick (however new employees after deadline will still not be exempted)
-may have more success with a life+LTC but be aware that other +LTC are not necessarily eligible. (Disability+LTC was mentioned as not included as that is apparently a common Q)
Thanks to all for contributing to this thread. Even the cost of $580/yr on $100k simply buys a substandard plan assuming you have enough years of service to qualify.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
How did you figure this? In my case, I applied for a standalone policy because the price diff was quite substantial (something like $300/yr vs $1100/yr) and I already have Life through employer.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
The policy has to have a tax-qualified section 7702 rider. I did 7 applications today alone for Nationwide and have 5 more scheduled for this weekend already. They are going to be insanely busy underwriting the influx of apps especially after telling people it needs to be in by next Friday.Marseille07 wrote: ↑Fri Jul 30, 2021 10:43 pmHow did you figure this? In my case, I applied for a standalone policy because the price diff was quite substantial (something like $300/yr vs $1100/yr) and I already have Life through employer.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I didn’t price them at all, but with the LTC market tightening, it was general advice that some providers were more open to life+LTC. Doesn’t mean it financially makes sense, but rather a possible side door. Sorry, should have been clearer in the post.Marseille07 wrote: ↑Fri Jul 30, 2021 10:43 pmHow did you figure this? In my case, I applied for a standalone policy because the price diff was quite substantial (something like $300/yr vs $1100/yr) and I already have Life through employer.
(My personal is a stand alone too.)
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I see. I spoke with NYL and I'm pretty sure they offered products that fit 7702B. If in the event that my exemption is denied then I'll have to cancel the policy and head over to Texas.BruDude wrote: ↑Fri Jul 30, 2021 11:00 pmThe policy has to have a tax-qualified section 7702 rider. I did 7 applications today alone for Nationwide and have 5 more scheduled for this weekend already. They are going to be insanely busy underwriting the influx of apps especially after telling people it needs to be in by next Friday.Marseille07 wrote: ↑Fri Jul 30, 2021 10:43 pmHow did you figure this? In my case, I applied for a standalone policy because the price diff was quite substantial (something like $300/yr vs $1100/yr) and I already have Life through employer.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Oh I see what you mean, you were talking about the chance of getting coverage. I took it to mean the chance of getting an exemption come Octoberdstac wrote: ↑Fri Jul 30, 2021 11:09 pmI didn’t price them at all, but with the LTC market tightening, it was general advice that some providers were more open to life+LTC. Doesn’t mean it financially makes sense, but rather a possible side door. Sorry, should have been clearer in the post.Marseille07 wrote: ↑Fri Jul 30, 2021 10:43 pmHow did you figure this? In my case, I applied for a standalone policy because the price diff was quite substantial (something like $300/yr vs $1100/yr) and I already have Life through employer.
(My personal is a stand alone too.)
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I was approved for a Banker's life LTC policy that says, "This is NOT intended to be a Tax-Qualified Long-Term Care Insurance policy under Section 7702B(b) of the Internal Revenue Code, as enacted by "The Health Insurance Portability and Accountability Act of 1996". I got it from an LTC broker with the intention that it would qualify to opt out as it has better coverage for a less expensive premium. Are you saying this wouldn't qualify for the opt out? Or is that just for Life + LTC policies? If my policy doesn't qualify then I want to cancel it immediately while I'm still in the 30 day window.BruDude wrote: ↑Fri Jul 30, 2021 11:00 pm The policy has to have a tax-qualified section 7702 rider. I did 7 applications today alone for Nationwide and have 5 more scheduled for this weekend already. They are going to be insanely busy underwriting the influx of apps especially after telling people it needs to be in by next Friday.
This is so darn confusing.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Indigo wrote: ↑Sat Jul 31, 2021 12:09 pmI was approved for a Banker's life LTC policy that says, "This is NOT intended to be a Tax-Qualified Long-Term Care Insurance policy under Section 7702B(b) of the Internal Revenue Code, as enacted by "The Health Insurance Portability and Accountability Act of 1996". I got it from an LTC broker with the intention that it would qualify to opt out as it has better coverage for a less expensive premium. Are you saying this wouldn't qualify for the opt out? Or is that just for Life + LTC policies? If my policy doesn't qualify then I want to cancel it immediately while I'm still in the 30 day window.BruDude wrote: ↑Fri Jul 30, 2021 11:00 pm The policy has to have a tax-qualified section 7702 rider. I did 7 applications today alone for Nationwide and have 5 more scheduled for this weekend already. They are going to be insanely busy underwriting the influx of apps especially after telling people it needs to be in by next Friday.
This is so darn confusing.
The 7702B rider is required for Life+LTC policies.
A non-tax qualified long-term care insurance policy still meets the state of Washington's definition of "long-term care insurance" therefore it qualifies for the opt-out.
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
This is something you need to check during the application process. I've been very open about it with my NYL representative, as there's no point in hiding.Indigo wrote: ↑Sat Jul 31, 2021 12:09 pmI was approved for a Banker's life LTC policy that says, "This is NOT intended to be a Tax-Qualified Long-Term Care Insurance policy under Section 7702B(b) of the Internal Revenue Code, as enacted by "The Health Insurance Portability and Accountability Act of 1996". I got it from an LTC broker with the intention that it would qualify to opt out as it has better coverage for a less expensive premium. Are you saying this wouldn't qualify for the opt out? Or is that just for Life + LTC policies? If my policy doesn't qualify then I want to cancel it immediately while I'm still in the 30 day window.BruDude wrote: ↑Fri Jul 30, 2021 11:00 pm The policy has to have a tax-qualified section 7702 rider. I did 7 applications today alone for Nationwide and have 5 more scheduled for this weekend already. They are going to be insanely busy underwriting the influx of apps especially after telling people it needs to be in by next Friday.
This is so darn confusing.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Thanks Wow2012. I was hoping that's the case. The BL policy coverage and premium was a much better option than what my employer was offering (Life + LTC from Chubb).
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I heard that NYL raising trad LTCI minimum to $100/day starting tomorrow.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Update - John Hancock is suspending sales of all LTC rider policies on August 6. They now have a massive backlog of applications. If you haven’t applied yet, you better apply real quick before other companies do the same.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
The LTC amount is 2X the death amount. So if you sign up for the minimum 25K death benefit, you get 50K Ltc coverage, which qualifies for the exemption. Unfortunately, that 2X fact is buried deep in the fine print.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
How many policies have you sold from people reading this thread?
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I pinged my workplace and they're made aware of this law (my workplace does not have a WA footprint). They might be able to negotiate some group policy with someone this month.
I'm already talking to NYL, but this would be a great Plan B if they can work something out; could even be better than NYL too.
I'm already talking to NYL, but this would be a great Plan B if they can work something out; could even be better than NYL too.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
None that I can remember. I’ve been insanely busy trying to keep up with all of the ones I’ve already got in queue. This is going to be an absurd week and my brokerage is probably going to absolutely hate me for submitting a ton of $275 policies
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Age 37 - received 2 quotes from Nationwide and NYL yesterday. Will be signing either this week since I'm late to the game and just want something in place before both companies stop taking applications to meet the opt out date. I am in the 200k+ category and expect salary to increase about 10% yearly for at least the next 3-5 years. Both are UL+LTC riders. Basically NW $1285.08/2 years vs. NYL $1,655.04/3years. Will get a quote from NYL for 2 years to compare "apples to apples".
Nationwide:
Premium received Annual: $1,285.08
Year 1 - Age 100
Total: $80,960.04 if paid to Age 100
Refund of Premium on Surrender Maximum LTC Benefit1
Total Long-term care benefit Day 1: $72,000
Age 80: $72,000
Maximum monthly LTC benefit Day 1: $3,000
Age 80: $3,000
LTC specified benefit period 2 years
Inflation protection option declined
Specified amount (amount
accelerated for long-term care)
$72,000.13
Note: The Net Death Benefit may be higher in some
years. See Net Death Benefit column of the Tabular
Detail.
Guaranteed minimum death benefit $14,400.03
NYL:
Asset Flex (ICC20-AF-MP)
Initial Face Amount: $108,000
Total Long-Term Care (LTC) Benefit Amount: $108,000
Total LTC Benefit Duration: 3 years
Monthly Benefit for LTC: $3,000
LTC Acceleration Benefit: $108,000
LTC Acceleration Benefit Duration: 3 years
Extension of Benefits (EOB) for Long-Term Care Rider (ICC20-
AF-MEOB):
Pay to Age 65 Annual Planned Premium Amount: $1,655.04
Total Planned Premium: $46,341.12
Nationwide:
Premium received Annual: $1,285.08
Year 1 - Age 100
Total: $80,960.04 if paid to Age 100
Refund of Premium on Surrender Maximum LTC Benefit1
Total Long-term care benefit Day 1: $72,000
Age 80: $72,000
Maximum monthly LTC benefit Day 1: $3,000
Age 80: $3,000
LTC specified benefit period 2 years
Inflation protection option declined
Specified amount (amount
accelerated for long-term care)
$72,000.13
Note: The Net Death Benefit may be higher in some
years. See Net Death Benefit column of the Tabular
Detail.
Guaranteed minimum death benefit $14,400.03
NYL:
Asset Flex (ICC20-AF-MP)
Initial Face Amount: $108,000
Total Long-Term Care (LTC) Benefit Amount: $108,000
Total LTC Benefit Duration: 3 years
Monthly Benefit for LTC: $3,000
LTC Acceleration Benefit: $108,000
LTC Acceleration Benefit Duration: 3 years
Extension of Benefits (EOB) for Long-Term Care Rider (ICC20-
AF-MEOB):
Pay to Age 65 Annual Planned Premium Amount: $1,655.04
Total Planned Premium: $46,341.12
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
You can get a $100k Nationwide No-Lapse Guarantee II UL policy with 2% LTC rider guaranteed to age 70 for about $250-400 depending on your health. Don't know why NYL is quoting you a pay to age 65 only policy if you just want this for opt-out purposes. The premium would be a lot lower if it was a lifetime pay policy.blacknotebooks wrote: ↑Tue Aug 03, 2021 11:08 am Age 37 - received 2 quotes from Nationwide and NYL yesterday. Will be signing either this week since I'm late to the game and just want something in place before both companies stop taking applications to meet the opt out date. I am in the 200k+ category and expect salary to increase about 10% yearly for at least the next 3-5 years. Both are UL+LTC riders. Basically NW $1285.08/2 years vs. NYL $1,655.04/3years. Will get a quote from NYL for 2 years to compare "apples to apples".
Nationwide:
Premium received Annual: $1,285.08
Year 1 - Age 100
Total: $80,960.04 if paid to Age 100
Refund of Premium on Surrender Maximum LTC Benefit1
Total Long-term care benefit Day 1: $72,000
Age 80: $72,000
Maximum monthly LTC benefit Day 1: $3,000
Age 80: $3,000
LTC specified benefit period 2 years
Inflation protection option declined
Specified amount (amount
accelerated for long-term care)
$72,000.13
Note: The Net Death Benefit may be higher in some
years. See Net Death Benefit column of the Tabular
Detail.
Guaranteed minimum death benefit $14,400.03
NYL:
Asset Flex (ICC20-AF-MP)
Initial Face Amount: $108,000
Total Long-Term Care (LTC) Benefit Amount: $108,000
Total LTC Benefit Duration: 3 years
Monthly Benefit for LTC: $3,000
LTC Acceleration Benefit: $108,000
LTC Acceleration Benefit Duration: 3 years
Extension of Benefits (EOB) for Long-Term Care Rider (ICC20-
AF-MEOB):
Pay to Age 65 Annual Planned Premium Amount: $1,655.04
Total Planned Premium: $46,341.12
Last edited by BruDude on Tue Aug 03, 2021 12:59 pm, edited 1 time in total.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
BruDude wrote: ↑Tue Aug 03, 2021 12:57 pmYou can get a $100k Nationwide No-Lapse Guarantee II UL policy with 2% LTC rider guaranteed to age 70 for about $250-400 depending on your health.blacknotebooks wrote: ↑Tue Aug 03, 2021 11:08 am Age 37 - received 2 quotes from Nationwide and NYL yesterday. Will be signing either this week since I'm late to the game and just want something in place before both companies stop taking applications to meet the opt out date. I am in the 200k+ category and expect salary to increase about 10% yearly for at least the next 3-5 years. Both are UL+LTC riders. Basically NW $1285.08/2 years vs. NYL $1,655.04/3years. Will get a quote from NYL for 2 years to compare "apples to apples".
Nationwide:
Premium received Annual: $1,285.08
Year 1 - Age 100
Total: $80,960.04 if paid to Age 100
Refund of Premium on Surrender Maximum LTC Benefit1
Total Long-term care benefit Day 1: $72,000
Age 80: $72,000
Maximum monthly LTC benefit Day 1: $3,000
Age 80: $3,000
LTC specified benefit period 2 years
Inflation protection option declined
Specified amount (amount
accelerated for long-term care)
$72,000.13
Note: The Net Death Benefit may be higher in some
years. See Net Death Benefit column of the Tabular
Detail.
Guaranteed minimum death benefit $14,400.03
NYL:
Asset Flex (ICC20-AF-MP)
Initial Face Amount: $108,000
Total Long-Term Care (LTC) Benefit Amount: $108,000
Total LTC Benefit Duration: 3 years
Monthly Benefit for LTC: $3,000
LTC Acceleration Benefit: $108,000
LTC Acceleration Benefit Duration: 3 years
Extension of Benefits (EOB) for Long-Term Care Rider (ICC20-
AF-MEOB):
Pay to Age 65 Annual Planned Premium Amount: $1,655.04
Total Planned Premium: $46,341.12
I'm guessing his agent doesn't want to sell a $250-$400 policy.
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Probably true, these policies can be a lot of work for very little money and still have the chance of lapsing in the first year if people just get their exemption and then drop the policy. A lot of people have no idea the Nationwide policy can be done to age 70 either, I didn't until I was messing around with the software. In fact, it is the only UL policy I have ever seen that has a guaranteed to age 70 only option...
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
I'm guessing the UL Guaranteed to 70 is probably double - triple the cost of a 30 year term policy for a 40 year old? I guess for some people it could be worth it.BruDude wrote: ↑Tue Aug 03, 2021 1:01 pmProbably true, these policies can be a lot of work for very little money and still have the chance of lapsing in the first year if people just get their exemption and then drop the policy. A lot of people have no idea the Nationwide policy can be done to age 70 either, I didn't until I was messing around with the software. In fact, it is the only UL policy I have ever seen that has a guaranteed to age 70 only option...
Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit
Believe it or not, the UL to age 70 is actually cheaper than a 30-year term for a 40 year old male. Term is $225/year for $100k and UL to age 70 is $205. $500k term is $640 and $500k UL to age 70 is $618. Very strange...tj wrote: ↑Tue Aug 03, 2021 1:06 pmI'm guessing the UL Guaranteed to 70 is probably double - triple the cost of a 30 year term policy for a 40 year old? I guess for some people it could be worth it.BruDude wrote: ↑Tue Aug 03, 2021 1:01 pmProbably true, these policies can be a lot of work for very little money and still have the chance of lapsing in the first year if people just get their exemption and then drop the policy. A lot of people have no idea the Nationwide policy can be done to age 70 either, I didn't until I was messing around with the software. In fact, it is the only UL policy I have ever seen that has a guaranteed to age 70 only option...