DeathBenefitOptionType

modifiedEndowmentContractTestDatestring(date)

The MEC Test Date refers to the last date on which the life insurance policy was tested to determine whether it qualifies as a Modified Endowment Contract (MEC) under IRS regulations. This date is updated whenever a new MEC test is performed, ensuring the policy remains compliant with federal tax rules

Example:2023-01-01

amountExcessToModifiedEndowmentContractnumber(double)

The Amount Excess to MEC refers to the excess premium amount paid into a life insurance policy beyond the IRS-imposed Modified Endowment Contract (MEC) limit. This excess must be reimbursed, adjusted, or restructured to prevent the policy from becoming a MEC, which would alter its tax treatment

modifiedEndowmentContractStatusDatestring(date)

The MEC Status Date refers to the exact date when a life insurance policy is classified as a Modified Endowment Contract (MEC) or confirmed as non-MEC. This date is critical for determining how future withdrawals and policy loans will be taxed

Example:2023-01-01

modifiedEndowmentContractStatusnumber

The MEC Status indicates whether a life insurance policy has been classified as a Modified Endowment Contract (MEC) under IRS regulations. This status determines the tax treatment of withdrawals, loans, and distributions from the policy

Allowed values:true

sevenPayTestBasisnumber(double)

The 7-Pay Test Basis refers to the total cumulative premium paid into a life insurance policy during the first seven years (the 7-pay period), as measured against the IRS 7-Pay Test limit. This amount is used to determine whether the policy qualifies as a life insurance contract or is classified as a Modified Endowment Contract (MEC).

Example:198

sevenPayPremiumnumber(double)

The 7-Pay Premium refers to the maximum allowable premium that can be paid into a life insurance policy during the first seven years without triggering Modified Endowment Contract (MEC) status. It ensures that the policy remains a tax-advantaged life insurance contract rather than an investment vehicle

Example:19807.51079

sevenPayStartDatestring(date)

The 7-Pay Start Date / Material Change Date refers to the date when the 7-Pay Test period begins. This is initially set at policy issuance (matching the Policy Start Date) and resets whenever a material change occurs that affects the policy’s funding limits

Example:2023-01-01

sevenPayPeriodstring(date)

The 7-Pay Period refers to the time frame during which the policy must comply with the 7-Pay Test to avoid Modified Endowment Contract (MEC) status. It starts on the 7-Pay Start Date (initially set at policy issuance) and lasts for seven years. The 7-Pay Period Expiration Date is calculated as: 7-Pay Expiration Date=7-Pay Start Date+7 Years

Example:2030-01-01

sevenPayLimitnumber(double)

The 7-Pay Limit refers to the maximum total premium that can be paid into a life insurance policy within the first seven years without triggering Modified Endowment Contract (MEC) status. It is the benchmark used in the 7-Pay Test to determine whether a policy remains a tax-advantaged life insurance contract

yearInPeriodinteger(int32)

The Year in Period refers to the current year within the seven-year time frame of the 7-Pay Test. It is crucial because the 7-Pay Limit increases each year, and the test is updated annually to ensure the policy remains within IRS limits

unnecessaryPremiumnumber(double)

The Unnecessary Premium refers to the amount of premium that exceeds the limit set by the Nonforfeiture Premium Test (NPT Test). If premium payments are higher than the NPT limit, this amount is flagged as unnecessary premium, which may need to be refunded, adjusted, or redirected

Example:232.12

Example

guidelinePremiumobject

Show Child Parameters

modifiedEndowmentContractobject

Show Child Parameters

Example

Allowed values:LEVELINCREASING

Allowed values:APPROVEDNOTAPPROVEDPROCESSED

Allowed values:YesNo

ModifiedEndowmentContract

TestValues

ClaimStatus

ProofOfDeathReceived