2 Certain tax advantages are no longer applicable to a life insurance policy if too much money is put into the policy during its first seven years, or during the seven-year period after a “material change” to the policy. If the cumulative premiums paid during the applicable 7-year period at any time exceed the limits imposed under the Internal Revenue Code the policy becomes a “Modified Endowment Contract” or MEC. A MEC is still a life insurance policy, and death benefits continue to be tax free, but any time you take a withdrawal from a MEC (including a policy loan), the withdrawal is treated as taxable income to the extent there is gain in the policy. In addition, if you are under 59½, a penalty tax of 10% could be assessed on those amounts and upon surrender of the policy. Taxpayers should always seek and rely on the advice of their own independent tax professionals. Please understand that New York Life Insurance Company, its affiliates and subsidiaries, and agents and employees of any thereof, may not provide legal or tax advice to you.
ClearPath Wealth Strategies LLC is not owned or operated by [New York Life Company/Eagle Strategies LLC/NYLIFE Securities LLC] or its affiliates.
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The Whole Life policy form number is ICC18217-50P (4/18).
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New York Life Insurance Company 51 Madison Avenue New York, NY 10010 www.newyorklife.com 14433.082022 SMRU1789683 (Exp.09.01.2024)
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