Question

Which type of policy is considered to be overfunded, as stated by IRS guidelines?A. Modified Whole LifeB. Modified Endowment ContractC. Variable Universal LifeD. Interest-Sensitive Whole Life

Answer 1

Answer: The correct answer is "Modified Endowment Contract". A policy that is overfunded to where it does not meet the 7-pay test is considered a Modified Endowment Contract.

Step-by-step explanation: