Your client, Albert, purchased a life insurance policy. He wants you to determine if it is a modified endowment contract (MEC) for tax purposes. To be classified as a MEC, a policy must have which of the following qualities?
1) Be a life insurance policy under state law
2) Meet either the cash value accumulation test or the guideline premium and cash value corridor test
3) Be a contract that was entered into on or after June 21, 1988
4) Fail to meet the seven-pay test