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A policy that becomes a Modified Endowment Contract (MEC): will no longer allow for policy loans must be placed in an irrevocable trust can never be reinstated after a lapse will lose many of its tax advantages

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A policy that becomes a Modified Endowment Contract (MEC):
will no longer allow for policy loans
must be placed in an irrevocable trust
can never be reinstated after a lapse
will lose many of its tax advantages

 
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