Met life LIFE 98

[scagnt83]

RPU is a non-forfeiture option

Non-forfeiture options are provisions for lapsed policies

I would hope a carrier would allow RPU to keep policy active & not report the loan as a taxable event, I am just not 100% certain the carrier can or will or how they have to account for basis/gain in a policy with a large extinguished loan that is greater than basis.

PS-- another 4 option to look into is to see if changing ownership of policy to a charity could at all be an option. I know that ownership changes on a MEC is a taxable event to the releasing owner, but I am not sure if a ownership change on a non-MEC is a taxable event to the releasing owner

It sounds like you are trying to give the IRS ammo against every Overloan Protection Rider ever sold..... lol.

But excellent points. Probably why carriers have the disclaimer they do on that Rider.