Ed Gagliardi battled lymphoma for eight years.
A modified endowment contract is a cash value life insurance contract in the United States where the premiums paid have exceeded the amount allowed to keep the full tax treatment of a cash value life insurance policy .. cash value life insurance. permanent life insurance. contract. contract. United States. United States. In a modified endowment contract , distributions of cash value are taken from taxable gains first as compared to distributions taken from non taxable contributions .. contract. contract. In other words , withdrawals will typically be taxed as ordinary income -LRB- typically the highest rates for investments -RRB- instead of treated as non taxable income .