modified benefit life insurance

modified premium life insurance policy

Life insurance is not for everyone.

If a company gives 10% interest and you make $1000 in payments, you'll get $1100 back (except if you die during the waiting period).

Although the difference may not seem significant, it can impact your finances. While you may not see much cash value growth in two years, a more extended introductory period could cause you to lose some. You'll also be paying five to fifteen times more for similar coverage under a term policy than you would without a crucial policy feature.

You still pay more for your coverage than for term life insurance

The most important fact about life insurance is that there are many options.

The good thing about a whole-life modified policy is that people with severe health conditions can obtain new coverage. Modified life plans usually have little or no medical/lifestyle insurance. You can still get new coverage even if your condition is severe. Depending on your current health condition, you may need to modify your whole life.

what is a graded premium whole life policy?

Whether you are Coach B. or any other agency, working with an independent agency will ensure you get the best coverage at the lowest rates.

Still paying much more for your coverage than you would for term life insurance

This contrasts against traditional or level life insurance policies. Premiums are locked in and will remain the same over time.

what is a graded premium whole life policy?
is it possible to get life insurance with cancer?

is it possible to get life insurance with cancer?

The company can grant different interest rates. You must note that the interest granted depends on the premiums paid and not the death benefit.

Modified plans are a form of final expense insurance.

This is how cash value grows that you can borrow.

traditional level premium contract policy

Losing out on cash value savings, one of whole life's main benefits

Your Policy could be cancelled if you cannot pay your premiums as they increase. You may also be subject to high surrender fees. Your family could lose financial protection under your policy.

Prices cannot increase over time. There is no way to decrease coverage; the Policy cannot be cancelled at any time.

what companies offer whole life?
what companies offer whole life?

Although the death benefit protection is the same, premiums are not equal.

Insurance companies prices and quality of life are significant factors in their competition.

First, you will almost certainly have the option of a modified whole-life contract. Senior citizens over 80 are exempt from this rule. Modified plans can only be obtained by those over 80.

modified benefit life insurance
why whole life insurance is a bad idea?

After premiums increase, they typically stay consistent for the rest of the Policy. Premium amounts typically rise only once.

For modified premium whole life, some companies have a 2-year waiting period, and some make you wait three years.

This is undoubtedly true for modified whole life insurance.

why whole life insurance is a bad idea?

Frequently Asked Questions


Modified whole life insurance offers lower premiums for a short time (usually two to three years but occasionally up to five or 10), followed by a higher rate for the remainder of the policy.



CEO, The Annuity Expert. A Modified Endowment Contract, or MEC, is a life insurance policy modified from the traditional whole life insurance policy. A MEC offers tax-deferred growth and allows you to take out loans against the policy's cash value without penalty.