### Question
How does the law define qualified 20-pay contract?


### Answer
Under *26 U.S.C. § 7702*, **qualified 20-pay contract** is defined as:

> any contract which—



(A) requires at least 20 nondecreasing annual premium payments, and



(B) is issued pursuant to an existing plan of insurance

#### Citation:
  - *26 U.S.C. § 7702*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 79-DEFINITIONS**

