what is the difference between modified life insurance and whole life insurance?

human life value approach

Summary: There are partial coverage plans which pay a portion or all of the death benefit within the first two years. However, plans that pay 100% of the benefit immediately after the death are over will also be available.

Do you want to know more about modified whole life insurance?

The bad: These plans have two significant drawbacks. They have a waiting period and premiums. These plans are available to applicants with severe health problems. The insurance company is willing to take on many risks. The premiums for modified policies are higher than those of non-modified policies. There is a waiting period of 2 to 3 years before death benefits are paid out.

Modified lifestyle insurance has premiums that fluctuate over time. Usually, this happens between 5-10 years after the Policy is started.

In other words, if a company pays 10% interest and makes $1000 of payments, you will receive $1100 back.

Premiums: Standard whole life insurance has the same premiums for your entire Policy, whereas modified whole life premiums change once.

intermediate premium whole life

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 that is higher than usual for the life of the Policy.

So if you want immediate Coverage, you have to answer health questions. There are no exceptions to that rule.

what is the difference between modified life insurance and whole life insurance?
intermediate premium whole life

what does modified premium whole life mean?

We will explain the plans, show you prices and help you decide if this Policy suits your needs.

There will be a waiting period of 2-3 years for any policy issued by any company that does not have health questions.

Premiums that have increased are usually stable throughout the Policy's term. The premiums are usually only increased once.

elimination period insurance
elimination period insurance

Everything has its pros and con.

We mentioned that some policies do not require you to wait two years for your death benefit to be payable.

A whole life policy is quite simple. Here's what you need to know about whole life insurance policies:

is universal life insurance a good investment strategy?

Two significant differences exist between traditional whole life insurance and modified full life insurance.

However, you may be able to qualify for better, less expensive policies that offer full or partial Coverage during the first two years.

Sorry, but a captive agent can't offer you any other insurance company.

is universal life insurance a good investment strategy?

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.