A change by Congress will generally increase the amount of money that policyholders can contribute to their cash-value accounts. Federal lawmakers’ big year-end spending package includes a little-noticed revision of the tax code that is likely to boost sales of life insurance. The law lowers a minimum interest rate used to determine whether combination savings and death-benefit policies known as permanent life insurance are too much like investments to qualify for tax advantages granted to insurance. The interest-rate floor was put in place in 1984 to weed out policies that were mostly investment vehicles with a thin layer of insurance. Lowering the rate allows owners to put more in the savings portion. Read full article by the Wall Street Journal …
The Circle of Wealth® has some powerful presentations to explain the MEC limits and to show how a financial strategy including permanent insurance can benefit one’s financial goals. Here’s a couple you can check out:
Learn more about how the Circle of Wealth® can help you … become a Successful, Trusted Financial Expert (& stop losing sales)
- Your clients deserve a reliable financial strategy they can understand, and you can give it to them.
- Attend our Intro to the Circle of Wealth® demo webinar to learn more (sign-up here)