Cash Value Accumulation Test definition

Cash Value Accumulation Test the Minimum Death Benefit equals the Policy Value divided by the Net Single Premium shown on page 6 at the Insured's attained age.
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Cash Value Accumulation Test. The minimum Death Benefit must be maintained. We may modify the Minimum Insurance Percentage shown on the Policy Data Page, retroactively if needed, to ensure or maintain qualification of this policy as a life insurance contract for federal income tax purposes, not withstanding any other provision of this policy to the contrary. Policy Changes Effect on Life Insurance Qualification Tests - Policy changes, such as a change in Death Benefit Option, Total Face Amount, or certain other policy changes, will frequently change the policy's limits under the selected Life Insurance Qualification Test. If any requested change would cause the policy to fail to qualify as life insurance for tax purposes we may refuse or limit the request.
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Examples of Cash Value Accumulation Test in a sentence

  • Change in Benefits – Under the Guideline Premium Test or the Cash Value Accumulation Test, whichever is specified for your Policy, any change in Policy or rider benefits or certain other factors may require an adjustment to the Policy’s tax qualification limits.

  • Change in Benefits — Under the Guideline Premium Test or the Cash Value Accumulation Test, whichever is specified for your policy, any change in policy or rider benefits or certain other factors may require an adjustment to the policy’s tax qualification limits.

  • Change in Benefits – Under the Guideline Premium Test or the Cash Value Accumulation Test, whichever is specified for your policy, any change in policy or rider benefits or certain other factors may require an adjustment to the policy’s tax qualification limits.

  • Changes to the Policy may affect these percentages if the death benefit test is the Cash Value Accumulation Test.

  • The Code provides two tests to determine whether the policy meets the definition of life insurance: the Cash Value Accumulation Test; and the Guideline Premium Test.

  • To do so, this Policy must qualify under one of two tests, the Cash Value Accumulation Test or the Guideline Premium Test as defined in the Internal Revenue Code Section 7702.

  • The Death Benefit Compliance Test, as specified by You in the Application, is either The Cash Value Accumulation Test or The Guideline Premium Test, as shown in Section 1.

  • OPTION 5 The Death Benefit equals the greater of: - The Face Amount shown in Section 1 plus the Cash Value; and - The death benefit required by the Cash Value Accumulation Test with the Net Single Premium Corridor.

  • The Minimum Death Benefit Percentages are used to determine the Minimum Death Benefit under the Cash Value Accumulation Test.

  • The test in effect for determining compliance with the IRC definition of life insurance is shown on page 3 and will be either: (1) the Guideline Premium/Cash Value Corridor Test: the Minimum Death Benefit equals the Policy Value multiplied by the corridor percentage shown on page 6 at the Insured's attained age; or (2) the Cash Value Accumulation Test: the Minimum Death Benefit equals the Policy Value divided by the Net Single Premium shown on page 6 at the Insured's attained age.