by Encompass Wealth Group | Apr 20, 2021 | Uncategorized
Financial Literacy Month Term of the Day MODIFIED ENDOWMENT CONTRACT (MEC) According to federal tax law limits, MEC is the term given to a life insurance policy that’s exceeded its funding. In other words, the IRS doesn’t consider a MEC to be a life...
by Encompass Wealth Group | Apr 17, 2021 | Uncategorized
Financial Literacy Month Term of the Day REQUIRED MINIMUM DISTRIBUTION (RMD) The amount of money required by the IRS to be withdrawn each year from traditional IRAs and employer-sponsored retirement plans. Thanks to the recent SECURE Act passing, RMDs now generally...
by Encompass Wealth Group | Apr 15, 2021 | Uncategorized
Financial Literacy Month Term of the Day 1035 EXCHANGE Used in life insurance, the IRS allows a 1035 exchange to be executed to replace one life insurance policy with another. Any life insurance type can go through a 1035 exchange except for a term policy, and...
by Encompass Wealth Group | Apr 13, 2021 | Uncategorized
Financial Literacy Month Term of the Day INDEXED UNIVERSAL LIFE INSURANCE (IUL) A type of cash value life insurance where the cash value is credited interest based on outside economic indicators, such as caps, floors, and the insurance company’s participation...
by Encompass Wealth Group | Apr 10, 2021 | Uncategorized
Financial Literacy Month Term of the Day ASSET-BASED LONG-TERM CARE Unlike traditional long-term care and its “use it or lose it” benefits, this is a life insurance policy that allows one to leverage the death benefit to pay for nursing care costs,...
