Basics/Terms
The term "MEC" stands for
What is Modified Endowment Contract?
The Grand Daddy of all permanent life insurance
What is Whole Life?
The IUL is often referred to the ________ of financial services
What is the Swiss Army Knife?
The amount of insurance is determined by these 3 things
What is Age, Gender, & Health?
The term COI
What is Cost of Insurance? (a fee you pay for the death benefit)
This is what causes a MEC to occur
What is - You put in more money into the policy than it allows?
The tax code that says how you can access the cash value while you are alive for TAX FREE Income
What is 7702?
The two primary benefits of owning an IUL
What is Death Benefit & Tax Free Income?
Minimize the death benefit and maximize the amount of money you can put in to the cash value
What is a properly structured or optimized IUL?
This is the amount that contract commission payments are based on.
What is target premium?
The letters in "LASER" fund stand for
What is Liquid Assets Safely Earning Returns?
The tax code that states the death benefit is TAX FREE.
What is 101(a)?
The benefit someone forfeits if they create a MEC.
What is Tax free access to the cash value in their policy?
Step #1 in the designing process
What is Categorize the Premiums? (Assets or Income or both)
The maximum rate of interest that the insurance company will credit to an index
What is Cap Rate?
The most that can be paid into the policy during the initial 10-14 years, depending on age
What is GSP or Guideline Single Premium?
This tax law is what determines the quickest way you can fund a life insurance policy (Slow the Flow)
What is TAMARA?
Back in the early 1980's, this company designed the UL to be focused on Living Benefits rather than Death Benefits
Who is EF Hutton?
Type of Death Benefit to choose if you are continuing to put in monthly premium from income.
What is an Increasing Death Benefit?
The part of the illustration that shows "0" interest credited.
What is the "Guaranteed" Illustration?
The 5 parties (people or organizations) in the IUL contract
What are Insured, Owner, Payor, Beneficiary and the Insurer?
The tax laws that dictate the minimum death benefit required (based on the insured's age, gender, and health) in order to accommodate the desired premium that will be allowed into the life insurance policy
What are TEFRA & DEFRA ?
This crediting strategy allows you to have gains with no losses because your money is not in the market
What is Indexing?
A rider that may be added to a policy.
What is: terminal illness, chronic, critical, accidental death, children's benefit, base insured?
The fastest way to put in the maximum amount of premium
What is 7 Pay?