MEC insurance, or Modified Endowment Contract insurance, presents a unique blend of life insurance and investment features. Unlike traditional life insurance policies, MECs offer the potential for cash value growth alongside a death benefit. However, this flexibility comes with complexities, including specific tax implications and potential penalties for early withdrawals. This guide unravels the intricacies of MEC insurance, offering a clear understanding of its benefits, costs, and risks. We will explore the various types of MEC policies available, their associated fees and investment strategies, and the crucial tax considerations involved. We’ll also examine the potential downsides and when an Read More …
