Pacific Life Bulletin - A Communication from the Life Division
Pacific Life Insurance Company
January 7, 2021
Broker General Agencies, Office Administrators, and Technical Staff
COVID-19 Relief Act and Life Insurance Limit Changes
COVID Relief Act and Life Insurance Limit Changes
Included in the latest COVID relief package* signed into law by the President on December 27th are changes to the tax code that will allow increased premium on life insurance policies sold on or after January 1, 2021. These changes will impact limits related to both the definition of life insurance (IRC Section 7702, including Guideline Premium Test and the Cash Value Accumulation Test) and modified endowment contracts (IRC Section 7702A).
Pacific Life is working to update our quoting and administrative systems to implement the new limits with the goal of ensuring our new policyowners have access to these changes as soon as possible.
*Refers to the Consolidated Appropriations Act, 2021, H.R. 133.
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Pacific Life, its affiliates, their distributors and respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Pacific Life Insurance Company is licensed to issue insurance products in all states except New York. Product/material availability and features may vary by state. Insurance products and their guarantees, including optional benefits and any crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. Look to the strength of the life insurance company with regard to such guarantees as these guarantees are not backed by the broker-dealer, insurance agency, or their affiliates from which products are purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the life insurance company.
Pacific Life Insurance Company’s individual life insurance products are marketed exclusively through independent third-party life insurance producers, which may include bank affiliated entities. Some selling entities may limit availability of some optional riders and investment options based on their client’s age and other factors. Your broker-dealer or firm can help you determine which optional riders and investment options are available and appropriate for your clients.
Pacific Life Insurance Company’s Home Office is located in Newport Beach, CA.
This email was sent by Pacific Life - Broad Market from 45 Enterprise, Aliso Viejo, CA, 92656 United States.