What is TEFRA and when did the law become effective?
TEFRA (Tax, Equity, Fiscal and Responsibility Act) was enacted in 1982. Congress established the limit of money that can be placed into a life insurance policy and still have the policy qualify as life insurance. When will I be able to begin remitting premium payments again once the TEFRA limits have been violated? If your policy has reached the TEFRA guidelines, you will receive a written notice when you may resume making your premium payments. Why can’t I pay any premiums toward my policy once it has exceeded TEFRA guidelines? The policy can only accept a maximum amount of premium to ensure that it continues to meet the definition of life insurance as outlined in the regulations. Since I can’t pay any premiums toward my policy, because it has exceeded TEFRA guidelines, can you accept loan payments? We will continue to accept loan repayments even if your policy has met the TEFRA guidelines. You may submit any repayments directly to our Administrative Office. Please indicate they are l
