Thanks for the good explanation on MECs.. Mabye now people will realize it's not a death sentence if used right. I actually purposely did a mec on a WL policy for someone over 59 1/2 some years ago. We actually kept the dB small and funded up to the insurance company limits which was about 3x the mec limit so we basicly used this as a tax deferred high yeild savings account that's churning out the dividends. Did it on a 10 pay at the time. The DB was a secondary issue since there may have been better ways to maximize the DB but at least the DB is state tax free. Its basicly taxed as an NQ annuity when MECd. This was as one year's ago I did this, today with my knowledge and understanding I may have approached this a bit differently.
![ปฏิเสธไม่ไหว (Crush on you) - LIPTA feat. No One Else [TEASER MV]](http://i.ytimg.com/vi/VC689EgdSIw/mqdefault.jpg)
Set up a call with LIFE180: LIFE180.com/clarity-call
Thanks for explaining the MEC and 7 pay in detail. Helped me understand it better.
Thanks for the good explanation on MECs.. Mabye now people will realize it's not a death sentence if used right. I actually purposely did a mec on a WL policy for someone over 59 1/2 some years ago. We actually kept the dB small and funded up to the insurance company limits which was about 3x the mec limit so we basicly used this as a tax deferred high yeild savings account that's churning out the dividends. Did it on a 10 pay at the time. The DB was a secondary issue since there may have been better ways to maximize the DB but at least the DB is state tax free. Its basicly taxed as an NQ annuity when MECd. This was as one year's ago I did this, today with my knowledge and understanding I may have approached this a bit differently.
Love it. As long as the client understands what they have, it can be used in many different beneficial ways - especially during retirement.
Hi Chris, could you please explain little bit more in detail on tapping into the cash value. What if I making loan, is it still taxable? Thank you
Taking loans is not taxable. In fact, in a lot of cases, the interest on the loan expense could be tax deductible (speak to your CPA, of course)
@@LIFE180 section 163(a) (1982). Interest on insurance policy loans is thus deductible!