What Does MEC Mean In Life Insurance? 
Jerry provides an excellent description of exactly what a `` MEC '' is just above here , so I wo n't re-hash that . Often when illustrating a policy the statement will appear with a warning that the policy will `` MEC '' at year so-and-so . That means that the policy will become a modified endowment contract at that point . One of the benefits of Whole Life policies is that you can `` over fund '' them to a point without causing them to MEC . By doing that - paying more than the minimum premium - you can accelerate the cash value growth and even the benefit value of the policy if it 's with a Mutual company that pays dividends and offers `` paid up additions '' . As Jerry mentioned some people choose to fund a policy with a single payment , which results in a MEC . However the MEC can be avoided and the policy be used for the tax benefits inherent with life insurance , and the resulting cash value used tax free , etc by funding the policy over 11 payments -LRB- 11 years -RRB- rather than a single payment or fewer than 11 . Those interested in the `` Infinite Banking '' strategies available with whole life policies will often take this option . 