Chapter 13 Summary:
A MEC can provide better tax benefits, provide faster and larger growth potential, and can be more liquid than an annuity. Unlike an annuity or tax-deferred account, MECs pass to your heirs totally tax-free just like any other life insurance death benefit.
Annuities may be a great option for some people who simply cannot qualify for life insurance because there are no medical exams or questions to purchase an annuity. If you are still healthy, you should at least review what a MEC can do for you instead. (More about buying annuities is discussed in Chapter 12.)