A Modified Endowment Contract (MEC) is best described as

A Modified Endowment Contract (MEC) is best described as 



a) A life insurance contract which accumulates cash values higher than the IRS will allow
b) An annuity contract which was converted from a life insurance contract
c) A modified life contract which enjoys all the tax advantages of whole life insurance
d) A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty


Answer: a) A life insurance contract which accumulates cash values higher than the IRS will allow

Popular posts from this blog

You are riding in Sarah's car when she fails to yield and causes an accident. Which of the following coverages would NOT pay for your injuries?

You are riding in Sarah's car when she fails to yield and causes an accident. Which of the following coverages would NOT pay for your injuries? Answer: Sarah's Collision coverage In the scenario described, if you are riding in Sarah's car when she fails to yield and causes an accident, the coverage that would typically not pay for your injuries would be "Medical Payments Coverage" (MedPay) or "Personal Injury Protection" (PIP), depending on the specific insurance policy and jurisdiction. Here's a breakdown of the relevant coverages and why they may or may not apply: Liability Coverage : This coverage pays for injuries and property damage you cause to others in an accident where you are at fault. Since Sarah is at fault in this scenario, her liability coverage would typically cover injuries to other parties involved in the accident, including you as a passenger in her car. However, it would not cover your injuries. Medical Payments Coverage (MedPay) :
Read more