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YouTubeMcFie Insurance
Modified Endowment Contract (MEC) - Explained
A life insurance policy becomes a modified endowment contract (MEC) if the policy does not meet the 7-pay test requirements. The 7-pay test is a tax code limitation designed to discourage life insurance premium schedules that would result in a paid-up policy before the end of a seven-year period. A policy that does not meet the 7-pay test is ...
13.1K viewsJul 22, 2019
Modified Endowment Contract Explained
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