A life insurance policy written after 1986 that fails to meet the seven-pay test is known as

An endowment policy is a type of life insurance that pays a lump sum either on a specified future date or upon the insured's death. While it can be subject to the seven-pay test, it does not automatically fail the test like a modified endowment contract does, which specifically refers to policies with excessive funding.

A modified life policy is designed with lower premiums in the initial years that gradually increase to a higher level. This type of policy does not inherently relate to the seven-pay test or MEC status, as it focuses on premium structure rather than the overall funding limitations imposed by the IRS.

A single premium contract is funded with one lump sum payment at the inception of the policy. While it may also be classified as a modified endowment contract if it exceeds the seven-pay test limits, the term itself does not specifically denote a failure of the test, making it not applicable in this context.