- Section 7702 of the Internal Revenue Code defines the guidelines for cash value life insurance policies and how to retain tax-advantaged status.
- Section 7702 “plans” are not really plans at all. Instead, they are privately issued cash value life insurance policies and can be a whole, universal, variable or indexed policy.
- A 7702 plan refers to a cash-value life insurance policy that has cash value in addition to the death benefit.