modified endowment contract


An endowment contract wherein the amount to be paid out after the endowment period is greater than the face value of the policy. The amount payable in the case of death is either the face value or the cash value, whichever is greater. This type of contract is taxable and subject to any penalties after tax.

Related Videos

Have a question about this term? Ask for help in the
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z