what is a graded premium life insurance policy?

what is a modified death benefit?

The price of your Policy can't go up over time. You can't reduce your coverage. Your Policy will never expire.

The two significant differences between traditional whole life insurance and modified whole life insurance are:

The bad: Two significant drawbacks are the waiting periods and the premiums. These plans will accept applicants with serious health issues. Insurance companies take on significant risks because of this. Because of this, premiums are more expensive than non-modified Policies, and there is a waiting period for the death benefit to pay out.

This contrasts with traditional or level insurance policies, which lock in premiums and keep them the same.

Like all things, there are pros and cons to everything.

If you have diabetes, XYZ company will charge more for you than ABC company.

what is a graded premium life insurance policy?

modified life policy characteristics

If diabetes is a problem, your wallet and family will not appreciate XYZ because they'll refuse to treat you or charge you much more than ABC.

The Cash value increases that you can borrow.

The interest granted varies by the company as well. It's important to note the interest granted is based on the premiums you've made, not the death benefit.

modified life policy characteristics
a graded premium life insurance policy is a modified form of

a graded premium life insurance policy is a modified form of

A modified whole-life policy is something that most people don't need. Traditional whole-life insurance policies can be more expensive and complicated than you need. A modified whole life policy will give you:

We'll explain how these plans work, show you actual prices, and help you understand if this type of Policy is right for you.

Losing out cash value savings is one of the main benefits of a whole life.

graded death benefit term life insurance

Why do we say that?

Some companies go as low as 8% and others as high as 30%, but most companies grant 10% interest on your premiums.

As mentioned in the previous section, not all policies require that you wait two years before your death benefit becomes payable.

whole life policy
whole life policy

There are two significant differences between traditional whole-life insurance and modified whole-life insurance:

If you work with what's called a "captive agent", they will only be able to sell you the one company they represent. But what if that company dislikes your health issues?

A "captive agent" is someone who can only sell you one company. What if the company you are working with doesn't like your health?

survivorship policy vs joint life

Cash Value: With whole life insurance, your premiums will immediately fund your cash account. But, for most modified policies, you will have to wait until your premiums rise.

The lower rates you receive early in your modified whole-life coverage are not a reduction. After the initial period, higher payments will make up for the difference.

As we mentioned in this section of this article, some policies don't make you wait 2-3 years before the death benefit is payable.

survivorship policy vs joint life

Frequently Asked Questions

 

 

A version of a whole life insurance policy where the insured pays less premium than usual for an agreed-upon amount of time. After that period, the premium payments increase to an agreed-upon amount higher than usual for the policy's life.


Modified whole life insurance is permanent life insurance in which premiums increase after a specific period. Usually, the premiums increase after five or ten years but remain constant. Traditional whole-life insurance premiums, in contrast, remain the same throughout the policy's life.



Is modified whole life insurance interest-sensitive? No, a modified whole life policy does not interest sensitive. It will build up a cash value that grows every time you make payment.