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Exam (elaborations)

WEBCE LIFE & HEALTH QUESTIONS AND CORRECT ANSWERS /5 STAR RATED

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WEBCE LIFE & HEALTH QUESTIONS AND CORRECT ANSWERS /5 STAR RATED A tax classification that is assigned to a life insurance policy that violates tax code funding rules, resulting in loss of some tax advantages common with life insurance. Any permanent life insurance policy becomes a MEC (and is thus subject to less favorable income tax treatment) if it fails to meet the 7-pay test. Do not confuse a MEC with a traditional endowment contract.

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