Question about NYLife custom whole life policy with MEC

Seeking Advice
1

I have a NYLife custom whole life paid-up policy that became a MEC (Modified Endowment Contract) when I front-loaded it. NYLife is now telling me I can’t add to the OPP rider anymore, even though I purchased the OPP rider. Does this seem accurate?

I was also told they no longer sell this particular custom whole life policy. Any insights would be appreciated. Thanks!

2

Who is your agent? It’s worth reaching out to them for clarification about what’s going on with your policy and the OPP rider.

3

Once a policy is paid up, you generally can’t add to it anymore. That might be why NYLife is saying you can’t contribute to the OPP rider.

4

Gale said:
Once a policy is paid up, you generally can’t add to it anymore. That might be why NYLife is saying you can’t contribute to the OPP rider.

That’s what it says online. But I would have thought it might allow OPP contributions as it ages. Thanks for the insight.

5

@Peyton
The bigger issue is the MEC status. That could have tax implications for withdrawals or loans from the policy.

6

Gale said:
@Peyton
The bigger issue is the MEC status. That could have tax implications for withdrawals or loans from the policy.

From what I understand, MEC status only affects loans or withdrawals. If I’m just using it for the death benefit, it shouldn’t matter, right?

7

@Peyton
You’re correct. If you’re only concerned with the death benefit, MEC status won’t impact that.