Below you’ll find a summary of scenarios showing how the 7702 calculations impact illustration values under four different designs:
- The NEW GPT minimum non-MEC death benefit
- A mid-level death benefit under GPT
- A GPT level death benefit with no optimal switch
- A CVAT minimum non-MEC death benefit
Each of these design scenarios have been summarized for three different clients across a range of ages, premium schedules, and income solves. Generally, you’ll find the new minimum non-MEC death benefit to offer the strongest accumulation and income, but the other scenarios offer alternatives to the new lower limits that do NOT shortchange the client in terms of income replacement and other protection benefits. Note that the new CVAT corridor limits, while offering substantially lower death benefits, do NOT produce the most attractive income solve solution.