Palpable Hit & MEC Concept
Sunday, August 31st, 2008The investment-sheltering attractions of single-premium whole life keyman insurance policy have taken a palpable hit under the MEC concept. While superior to the annuity in its tax-sheltering effect and comparable with it on internal rates of return, the MEC is not useful for those planning to use it while alive. It cannot be used as a place to drop a nest egg, letting it grow, while hiding it from the tax man. Since the investment aspect always has been one of the main selling points for insurance products, the industry tends to resist with great fervor this separation of insurance from investment.
