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Modified Endowment Contract (MEC) Explained. Tax Advantageous Asset Of Life Insurance Policies Contracts

Modified Endowment Contract (MEC) Explained. Tax Advantageous Asset Of Life Insurance Policies Contracts

A endowment that is modified (commonly known as a MEC) is really an income tax certification of a life insurance coverage that has been funded with increased cash than permitted under federal income tax regulations. A life insurance coverage which becomes a MEC isn’t any longer considered life insurance coverage by the IRS, but alternatively it really is considered an endowment contract that is modified. (далее…)

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