Form 497 JOHN HANCOCK LIFE INSURA streetinsider.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from streetinsider.com Daily Mail and Mail on Sunday newspapers.
A major boon for PPLI policies.
The recent appropriations bill (H.R. 133) and COVID-19 relief provisions, signed into law on Dec. 27, 2020, included a significant change to the interest rate assumptions underlying Internal Revenue Code Section 7702. These interest rates provide the parameters for a contract to qualify as a life insurance policy for income tax purposes. The effect will be to increase the amount of premium that can be deposited into a life insurance policy for a given amount of mortality risk that’s included in the policy contract. The change in the IRC Section 7702 interest rate assumptions is applicable to life insurance policies issued on or after Jan. 1, 2021.