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2. Modified endowment contract - Wikipedia

   en.wikipedia.org/wiki/Modified_endowment_contract

   A modified endowment contract (MEC) is a cash value life insurance contract in the United States where the premiums paid have exceeded the amount allowed to keep the full tax treatment of a cash value life insurance policy. In a modified endowment contract, distributions of cash value are taken from taxable gains first as compared to ...

3. What Is the Seven-Pay Test For Life Insurance? - AOL

   www.aol.com/finance/seven-pay-test-life...

   A modified endowment contract (MEC) is a former life insurance policy that has lost specific advantages due to accumulating surplus cash. For instance, permanent life insurance policies, such as ...

4. Endowment policy - Wikipedia

   en.wikipedia.org/wiki/Endowment_policy

   Contract to a new life insurance policy via the 1035 exchange privilege will render the newly issued contract as Modified Endowment Contract as well. This change to the law put an end to the widespread sale of traditional endowment policies in the United States such as Endowment at Age 65, Ten-Pay Endowment, Twenty-Pay Endowment, etc.

5. What is cash value life insurance? - AOL

   www.aol.com/finance/cash-value-life-insurance...

   Note: If the life insurance policy is a modified endowment contract (MEC), taxes are different. For tax purposes, withdrawals are on a last-in, first-out (LIFO) basis. This means that all ...

6. Life insurance - Wikipedia

   en.wikipedia.org/wiki/Life_insurance

   In flexible-premium policies, large deposits of premiums could cause the contract to be considered a modified endowment contract by the Internal Revenue Service (IRS), which negates many of the tax advantages associated with life insurance. The insurance company, in most cases, will inform the policy owner of this danger before deciding their ...

7. Variable universal life insurance - Wikipedia

   en.wikipedia.org/wiki/Variable_universal_life...

   Variable universal life insurance (often shortened to VUL) is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts , similar to mutual funds , and the choice of which of the available separate accounts to use is entirely up to the contract owner.