The «banking» policy's cash account is over funded up to the limits allowed without becoming a modified
endowment contract through the use of a paid up additions.
Not exact matches
Generally, this can take 5 - 7 years; although, it can be expedited
through a paid up additions rider and / or a supplemental term life rider on your policy to make sure that a modified
endowment contract (MEC) doesn't occur.
As the insured, you can simplify this process in one of two ways: you can structure the policy as a modified
endowment contract (MEC) to reduce the amount of pure risk in the
contract; you can also do a joint life underwriting, where typically only one of the spouses has to be reasonably healthy for the policy to pass
through underwriting.