Case design and illustration requests are common daily events that Independent Marketing Organizations (IMOs) handle for advisors they work with. Many of the advisors we work with do a great job of fact finding during the first meeting with a client. Getting the facts and details up-front are extremely important for putting together a good, strong recommendation that can be presented during your next meeting.
Life insurance provides valuable protection for loved ones. While the primary purpose of pure life insurance protection is to provide a death benefit, many cash-value products offer "living benefits" that you can take advantage of during your lifetime. One major living benefit of cash-value life insurance is access to the cash values in times of need, such as to help pay for a child's education or to help fund retirement.
To maximize the power of Internal Revenue Code (IRC) Section 7702 many producers wonder what is the best way to structure a life insurance policy if given the choice of using either the Cash Value Accumulation Test (CVAT) or the Guideline Premium Test (GPT). For this reason, making the proper choice -- or selecting a product with the specific test more favorable to the plan design -- is an important issue when structuring the policy. The test selected can have a significant impact on premiums, cash values and death benefits.
FOR PRODUCER USE ONLY. NOT FOR USE WITH CLIENTS.
This content is for informational and educational purposes only and is not designed, or intended, to be applicable to any person's individual circumstances. It should not be considered as investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.