Treatment of modified endowment contracts
(A) In general
(A)In general#
Notwithstanding paragraph (5)(C), in the case of any modified endowment contract (as defined in section 7702A)—
(i) paragraphs (2)(B) and (4)(A) shall apply, and
(ii) in applying paragraph (4)(A), “any person” shall be substituted for “an individual”.
(A)(i)#
paragraphs (2)(B) and (4)(A) shall apply, and
(A)(ii)#
in applying paragraph (4)(A), “any person” shall be substituted for “an individual”.
(B)Treatment of certain burial contracts#
Notwithstanding subparagraph (A), paragraph (4)(A) shall not apply to any assignment (or pledge) of a modified endowment contract if such assignment (or pledge) is solely to cover the payment of expenses referred to in section 7702(e)(2)(C)(iii) and if the maximum death benefit under such contract does not exceed $25,000.