Modified Endowment Contracts (MEC): Definition, Tax ... - Investopedia
Oct 5, 2025 · Modified endowment contracts (MECs) are life insurance policies that lose tax benefits due to excess cash value. An MEC's classification is determined by the IRS using the …
Understanding Modified Endowment Contracts: A …
Jul 6, 2025 · What Is a Modified Endowment Contract? A Modified Endowment Contract is a cash value life insurance policy that has received premium payments exceeding federal tax law …
What Is A Modified Endowment Contract? | U.S. News
Dec 4, 2025 · A modified endowment contract, also referred to as MEC, is a cash value life insurance policy in which the amount payable upon survival or death is more than the face …
What Is a Modified Endowment Contract (MEC)? | USAA
Dec 10, 2025 · One good example is a modified endowment contract, or MEC. What is a modified endowment contract? A MEC is a life insurance policy that exceeds certain IRS premium limits …
Pros & cons of modified endowment contracts (MEC) - Thrivent
Jan 27, 2025 · A modified endowment contract (MEC) occurs when a life insurance policy receives premiums that exceed certain IRS limits. This can affect the tax treatment of …
What Is a Modified Endowment Contract? - bankerslife.com
Oct 17, 2024 · However, if you contribute too much to your policy too quickly, you risk turning it into a modified endowment contract (MEC), which could result in losing those tax advantages. …
Modified endowment contract | Prudential Financial
Mar 21, 2024 · What is a modified endowment contract? A MEC is a cash-value life insurance policy that has exceeded premium payment limits (as defined by the IRS); in turn, the IRS …
Modified Endowment Contract (MEC): What, 7-Pay Test, Taxes
Apr 30, 2025 · What Is a Modified Endowment Contract? A Modified Endowment Contract (MEC) can be any life insurance policy that accumulates cash value and where the premiums paid …
What is a modified endowment contract (MEC)? - Policygenius
Jan 9, 2024 · What is a modified endowment contract (MEC)? When a cash value life insurance policy is overfunded and exceeds federal tax limits, it’s considered a modified endowment …
Modified Endowment Contract (MEC) Explained | 2025
4 days ago · What Is a Modified Endowment Contract? A Modified Endowment Contract is what the IRS calls a life insurance policy that’s been funded beyond certain limits. Think of it this …