Modified endowment contract

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Kevin owns a modified endowment contract. Kevin recently reassessed his insurance needs and decided that he would like to exchange his current modified endowment contract for a different insurance product. Which of the following transactions might result in gain realization?

If Kevin trades his modified endowment contract for a life insurance policy.

If Kevin trades his modified endowment contract for a different modified endowment contract.

If Kevin trades his modified endowment contract for an annuity.

None of the above transactions would result in the realization of gain.

Reference no: EM131330526

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