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How/Why You Should Maximize your Whole Life Insurance Policy

How/Why You Should Maximize your Whole Life Insurance Policy

 

This concept is all about maximizing and optimizing your Cash Flow Life Insurance so it works for you and your business interests.

 

We will walk you through the process to understand and identify to upper limit and ceiling of how you can max fund your policy to provide the greatest possible benefit available.

 

The term modified endowment contract, or MEC, has been around for more than 30 years, but it continues to blur and “bewilder” policyholders and agents alike.

 

Back in the 1970s, life insurance corporations were looking to control certain tax advantages of cash-value life insurance policies. The life insurers engineered products that allowed contract owners to amass cash that could be taken out completely free and clear of taxation.

 

The U.S. government saw this behavior as a tax shelter for the rich and created the Technical and Miscellaneous Revenue Act (TAMRA) as a solution. Under the TAMRA, a Modified Endowment Contract would no longer be considered a life insurance contract if:

 

  • The contract was created on or after June 20, 1988.
  • It meets the legal definition of a life insurance contract (IRS Section 7702).
  • It fails to meet the 7-pay test.

 

We design the policy to reach the highest possible limit without reaching this MEC definition. This is why it is so valuable to you and your business. This loophole was closed for a reason, but you can still take advantage of what this has to offer you. By reaching the MEC limit, you get to take advantage of all 10 cornerstones of an effective Cash Flow Life Insurance policy. These are:

 

  1. Tax deferred growth
  2. Tax free distribution
  3. Competitive Return
  4. High Contributions
  5. Collateral opportunities
  6. Safe Harbor
  7. No-loss provisions
  8. Guaranteed loan options
  9. Unstructured loan payments
  10.  Liquidity, use, and control

When you get to take advantage of all these benefits by maximizing the cash value of your contract, you really have the ability to scale your own business ventures and take them to the next level.

Schedule A Free 30-Minute Consultation

Our Financial Expert Advisor will personally reach out to answer all of your questions.

Schedule a free 30-Minute Consultation

Our Financial Expert Advisor will personally reach out to answer all of your questions.

Our Support and Sales Team is available 24/7 to answer your queries

Our Support and Sales Team is available 24/7 to answer your queries

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