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Investments glossary

Guideline Premium And Corridor Test (GPT)


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Quotes of the day:

A bad man, though raised to honour, always returns to his natural course, as a dog?s tail, though warmed by the fire and rubbed with oil, retains its form

— The Hitopadesa

The Guideline Premium And Corridor Test (GPT) test is used to determine whether an insurance product can be taxed as insurance rather than as an investment. GPT limits the amount of premiums that can be paid into an insurance policy relative to the policy’s death benefit.


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