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Article: SPVL touted for accumulation.(single premium variable life insurance provides tax-exempt death benefit)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- December 15, 1997
- Author:
CopyrightCOPYRIGHT 1997 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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With trillions in inheritance money poised for transfer in the next decade, according to a recent Cornell University study, insurers are counting on single premium variable life (SPVL) to capture some of that money.
Owners of the once-popular single premium whole life were generally scared off of single premium products during the late 1980s, when the Technical and Miscellaneous Revenue Act of 1988 (TAMPA) took away SPWL's tax-fee loan status.
But SPVLs, which are typically constructed like variable annuities with a life insurance component, come with an income-tax free death benefit and have been attracting interest since their debut two years ago. ...