Participation in the RAFT Strategy, Triple A or PPP Programs may require the purchase of an insurance company product. The insurance company product that is ultimately selected for a customer will vary based on an assessment of several factors, including, but not limited to: availability, suitability, underwriting (if necessary), specific customer needs and/or future intended use. Insurance company products are backed by the claims paying ability of the issuing insurance company. Life insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Some types of permanent life insurance may require consistent premium payments, or the policy may risk lapsing. Unpaid policy loans decrease future death benefits paid to beneficiaries. Excessive policy loans may cause the need for future premium payments. If a contract lapses due to excessive policy loans or if a customer surrenders their policy, one may be subject to tax payments for policy loans that exceeds the premiums paid. Excessive premium payments may cause the policy to become a modified endowment contract. Policies classified as modified endowment contracts may be subject to taxes when a loan or withdrawal is made.
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