From: "Cal Lester" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Is a MEC similar to both an Annuity and Universal Life Insurance?
Date: 25 Aug 2004 16:40:01 GMT
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	FHUuauxiv1L8HUAv0cy85lN0j+qKcPkRozRfd30XrSbcSBqOdxsnRA==
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"Brent D. Gardner, ChFC"  wrote in message news:wHSWc.14852$nk.11551@okepread05...
> "Tim Williams"  wrote in message
> news:2osm8lFe2s84U1@uni-berlin.de...
> >snipped
>
> To keeep things simple, look at it this way:
>
> During life, a MEC and annuity have SIMILAR income tax treatment.
>
> At death, there's a difference. One is income tax free.
>
> Generally, a MEC is something to avoid. Exceptions include BOLI and single
> premium products with accelerated benefits.


            Brent, please allow me to amplify your reponce, in that your admonition
            to AVOID a MEC definition of a Life Insurance contract should apply
            primarily to any desire that the Insured (or Owner) might have to take any
            funds OUT of the contract, in any fashion, PRIOR to Death.

            IF the INTENT is to maintain the contract UNTIL Death, then the fact that
            the Contract is determined to be an MEC is of no consequence.
Cal Lester CLU



>
> Brent D. Gardner, ChFC
> Chartered Financial Consultant
> http://members.cox.net/brentdgardner1378/