Considering a Whole Life Policy

[dgoldenz]

If you are looking for investments then you will be interested in Tax-Free Retirement. With a product called Indexed Universal Life your account grows tax-deffered but when matched with the consitant payments, you will save thousands, even millions that can not be offered by any type of IRA.

I'm sure you'd be willing to put that in writing for a client too...

 

[BNTRS]

It's called a 7702 plan, it's verrrrrrrry exclusive.

 

[yungstar]

7702 is a very exclusive rip off
Buy a level term and invest the difference

 

[Mehler91]

7702 is a very exclusive rip off
Buy a level term and invest the difference

Let's be real, you have no idea what a 7702 is.

 

[Cornelius]

What people are getting off track about what is the target market of Primerica. From my understanding unless things have changed they target the mid to lower income level with a simple concept that can be duplicated with the masses.

Some of the example posted just may not be concepts or products youngstar has to know about because there's a good chance he isn't in that market.

 

[smokin goose]

What is a 7702? ..............

 

[BNTRS]

What is a 7702? ..............

7702 Plan or 7702 Private Plan.

It's a scammy reference to 26 USC section 7702 regarding the taxability of life insurance.

There are those who think that because the trusts established by employers to share stocks or profits under ERISA guidelines take their name from the tax code that establishes them (e.g. 401k "plans") one can reference tax code regarding life insurance and call it a 7702 plan.

There's a huge difference in terms of intent on this, however. And NAIC guidelines regarding life insurance sales, which have been adopted and passed as law in 49 states, strongly discourage the practice if not make it flat out illegal.

 

[smokin goose]

7702 Plan or 7702 Private Plan.

It's a scammy reference to 26 USC section 7702 regarding the taxability of life insurance.

There are those who think that because the trusts established by employers to share stocks or profits under ERISA guidelines take their name from the tax code that establishes them (e.g. 401k "plans") one can reference tax code regarding life insurance and call it a 7702 plan.

There's a huge difference in terms of intent on this, however. And NAIC guidelines regarding life insurance sales, which have been adopted and passed as law in 49 states, strongly discourage the practice if not make it flat out illegal.

Oh my, a little over my head. But thanks for explaining.

 

[Norwayguy]

Oh my, a little over my head. But thanks for explaining.

It really isn't. All a 7702 plan is, is the section of the tax code it is just a permanent life insurance policy. And the agent compares the benefits of the life policy to a qualified plan. Examples include tax deferred growth, tax free income (loans) and other things.

I had a marketer give me a booklet comparing a TSA (what I spend a lot of time selling) to what they called a private plan section 7702. It was entertaining and if I really believed someone would read it all and wasn't so gimmicky I might use it.

What I do now is ask them if they are certain what they have now is the best approach and would be willing to consider something outside the box. Then I explain there are only 3 results between now and retirement.

1. They never reach it and pass away, My approach from day one provides more tax free money to the family.
2. They get sick or hurt and can no longer work. My approach will continue to put money into the account until age 60 which is not the age 62 or 65 like we where planning on but is better than a poke in the eye with a Sharp stick. If you get sick or hurt and can't work what happens to your retirement contributions?
3. You reach retirement, my approach can provide more tax free income potential.

Then its a question of if they have an open mind and are willing to look at it.

 

[rousemark]

2. They get sick or hurt and can no longer work. My approach will continue to put money into the account until age 60 which is not the age 62 or 65 like we where planning on but is better than a poke in the eye with a Sharp stick. If you get sick or hurt and can't work what happens to your retirement contributions?

Something that is not accomplished with Buy Term and Invest the Difference..