A modified whole-life agreement will almost always be available. Life insurance for seniors over 80 is one exception. Modified plans are usually only available for those aged 80 or younger.
No insurance company can cover every health problem. They must choose where they will compete for specific health conditions.
You might also see modified whole-life plans referred to by some companies as "final cost life insurance", "funeral insurance", "burial insurance", or "funeral insurance".
what is to be expected of a modified life policy?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.
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?
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.
The best Policy would be with the company that offers the most coverage and rates for a diabetic
Modified whole life insurance allows for lower premiums (usually for two to three years, but there are times when it can be up to five to 10 years). After that, the rate will increase for the rest of the Policy. The initial savings might be appealing, but it is not the best type of life insurance policy due to the high premiums and complex policy options.
The bad news: These plans come with two serious drawbacks, the premiums and the waiting period. These plans allow applicants who have serious health problems to apply. The insurance company accepts many risks because it takes on a lot. These premiums are often higher than for non-modified policies. They also have a waiting period of up to 2 years before the death benefit is paid.
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.
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.