Episode #184: Will the 7702 Tax Guideline Changes Open the IUL Floodgates?



 

This post is intended for financial professional use only.

As though the changes that AG49-A brought to IUL illustrations this past November weren’t enough to shake up the industry, something very big was packaged in the COVID relief bill passed by congress at the end of 2020. Originally set in 1984, the 7702 guidelines set interest rates for policies of 4% for CVAT/MEC, which was used in life insurance pricing to calculate premium limits. Fast forward 37 years, Congress has made significant changes to Section 7702 to be more reflective of today’s interest rate environment.

In this episode of Money Script Monday, Brian explains the impact of the new 7702 guidelines on whole life and IUL policies and what changes to anticipate from IUL carriers in terms of their cash value, minimum death benefit, and MEC limits.

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The information presented here is not specific to any individual's personal 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.

About Brian Manderscheid

Brian Manderscheid is the Vice President of Case Design at LifePro. He works with financial professionals designing advanced case illustrations that are built for longevity and are always in the best interest of the client.

Disclaimer

This information is meant for educational purposes only.

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