Modified Endowment Contracts
Life Insurance for Doctors
- The IRS has limits on life insurance contracts. There has to be a corridor between the death benefit you get and the premiums you put in the contract.
- The FIFO method is the best way to withdraw your money
- If you pass the modified endowment contract test, you will not have to pay taxes through FIFO.
- When you exceed your basis from taking money out, you then can start borrowing money and get the tax advantages.
Do you have further questions about a modified endowment contract in life insurance for physicians and dentists? Contact our experienced Financial Advisors to guide you.