### Question
How is the "qualified 20-pay contract" defined?


### Answer
The term **qualified 20-pay contract** is defined in *26 U.S.C. § 7702* as follows -

> 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**

