Tribute to Life Insurance Awareness Month: MEC and non-MEC life insurance Blog added by Steve Savant on September 26, 2013
Steve Savant

Steve Savant

Scottsdale , AZ

Joined: January 28, 2005

My Company

Life was great until 1988. Then TAMRA became law and introduced a new life insurance tax status and modified endowment contracts. With the exception of a tax-free benefit (which is a benefit), a MEC life insurance contract was taxed like an annuity. But the insurance industry developed a “work around,” and its use of non-modified endowment contracts for tax-advantaged income is more popular now than ever. Steve and consumer reporter Kassie Rohde introduce a Shakespearean inquiry, “to MEC or not to MEC; that, is the question.”

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