IUL and 7702

[Nir Melamoud]

Hi,

For WL I assume 7702 is bad for people who care more about Guarantee and DB , and better for people who prefer max cash value with some risk - don't know if you agree or not,

but my question is, how does it affect IUL, My guess is that since the DB can go down and the fees will go down, it is a win-win situation for IUL, is it true? Does anyone know how it will affect IUL?

 

[Nir Melamoud]

no one knows ?

 

[Tahoe Ray]

7702 is part of the code that came out in the mid-80s. I'm taking it that most agents don't understand your question.

 

[Nir Melamoud]

im talking about the changes that are coming this year https://www.wealthcg.com/blog/chang...benefit, it loses its tax favorable treatment.

 

[Tahoe Ray]

im talking about the changes that are coming this year https://www.wealthcg.com/blog/changes-irs-section-7702-create-exciting-opportunity-life-insurance#:~:text=The recent IRS Section 7702 rule change affects,death benefit, it loses its tax favorable treatment.

Here's the discussion that we had about this when it was first announced:

https://insurance-forums.com/community/threads/changes-to-7702-b-2-a-minimum-interest-rate.104282/

 

[Allen Trent]

7702 is part of the code that came out in the mid-80s. I'm taking it that most agents don't understand your question.

His question didn't make a lot of sense & I would assume those of us that understand the numerous components of the topic feel the agent suggesting the policy should address the questions & topic

 

[scagnt83]

The new changes to 7702 are beneficial for IUL and building CV. You can get a larger amount of premium in for the same DB vs. prior calculations.

Not as good for those looking for pure protection.