Exam term
Modified endowment contract (MEC)
A life insurance contract that fails the 7-pay test by being overfunded, causing living distributions to be taxed income-first with a possible penalty.
Lessons that use this term
- Tax treatment of life insurance and annuities, including modified endowment contracts California
- Tax treatment of life insurance premiums, proceeds, and MECs Florida
- Traditional whole life products New York
- Tax treatment of life insurance premiums, proceeds, and MECs New York
- Tax treatment of life insurance premiums, proceeds, and MECs Texas