New Legislation will Impact Premiums Limits Starting in 2021

The Consolidated Appropriations Act of 2021 (CAA), signed into law on December 27, 2020, includes changes to section 7702 of the Internal Revenue Code, impacting the interest rates used to determine Guideline Premium and 7-Pay Limits. Once we have implemented these new limits, our policyholders will be able to put more premiums into their policies relative to the previous limits.