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A variable universal life (VUL) policy can be classified as a modified endowment contract (MEC) if it fails to meet certain IRS guidelines regarding premium contributions and cash value accumulation. If the policyholder pays in excess of the allowable premium limits within the first seven years, the policy may be considered a MEC. This classification affects the tax treatment of withdrawals and loans from the policy, making them subject to income tax. Therefore, whether a VUL is a MEC depends on how it is funded.
What else can I help you with?
Is inflation independent variable?
No, it is an endogenous variable.
Is saving a stock variable?
no, it a flow variable
Marginal versus variable costing?
Variable cost refers to the TOTAL variable cost of all units, whereas marginal cost is the variable cost of the last unit only. Variable cost is the sum of all the individual marginal costs. The derivative of the Variable Cost is the Marginal Cost. The integral of the Marginal cost is the Variable Cost.
What is the scientific term of independent variable?
Independentvariableis:a factor or phenomenon thatcausesorinfluencesanotherassociatedfactor or phenomenon called adependent variable. For example,incomeis an independentvariablebecause it causes and influences another variableconsumption. In a mathematicalequationormodel, the independent variable is the variable whosevalueis given. In anexperiment, it is the controlledcondition(that is allowed tochangein asystematicmanner) whose effect on thebehaviorof a dependent variable is studied. Also calledcontrolled variable,explanatory variable, orpredictor variable. refer to link below
Formula for total variable cost?
Total Variable Cost = Number of Units * Variable cost per unit
Four Types Of Permanent Life Insurance?
universal variable universal whole variable whole
What is the primary difference between universal life and variable universal life?
The primary difference is how the cash value is invested. Variable universal life means it is invested in stocks and mutual funds and a "fixed" universal life is usually dependent on interest rates. Both carry high risk, but a fixed universal life policy gives you a guarantee that it will not go below a certain interest rate, while variable universal policies usually do not.
Do you need a security license to see variable universal life insurance?
Yes. To sell variable universal life insurance you will need a Series 63 Securities License, a variable life insurance license, and a regular life insurance license.
What are the pros and cons of variable universal insurance?
While Variable Universal Insurance is flexible and covers a death and burial insurance, it can be quite expensive, so you must decide what you are willing to pay.
Is variable universal insurance a reliable insurance company?
Variable universal is not as reliable as allstate. Allstate has a very fine state of the art business. As well as Universal insurance but is most likely to depend more on the money you spend with them to how much your under coverage.
What is special about variable universal life insurance?
What's special about variable universal life insurance is that it builds cash value. You can read more about this type of insurance online at the Wikipedia website. Once on the page, type "Variable universal life insurance" into the search field at the top of the page and press enter to bring up the information.
Can variable universal life insurance be converted into a fixed account?
Variable universal life insurance is not an account. It is a policy that invests in separate accounts in an attempt to earn higher returns than a fixed policy. A variable universal life insurance policy can be converted into a different type of life insurance policy but not a different kind of account.
What is the difference between variable life insurance and universal life?
Nothing is the difference. Universal Life can be fixed or variable. Variable simply means that the cash value is invested in stocks or mutual funds to create a fast (sometimes slower) cash value. With a fixed Universal Life product, the cash value can be linked to an interest rate or an Index.
What type of insurance contract is measured in units?
variable annuity
What products are offered by agents under life insurance?
Typical products offered by agents in this market include: whole life products; term products, such as universal, variable, and universal variable life insurance; and annuities
What life policy offers the owner investment in products such as money-market funds long-term bonds and equities.?
Variable/Universal
What is the word for a statement that is true for any number or variable?
The word for a statement that is true for any number or variable is a "universal statement" or a "universal quantification." In mathematical logic, this type of statement is typically denoted using the universal quantifier symbol (∀), which signifies "for all" or "for every." Universal statements are used to make generalizations that apply to all elements in a given set or domain.
