is it good to invest in variable life insurance?

is modified whole life insurance interest sensitive

The most important thing you must understand about life insurance is that no one company can be the best option for every person.

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

Modified whole life insurance policies are not recommended for most people. Traditional whole life insurance policies are more costly and complicated than you might need. Modified whole life policies are:

Prices can't increase over time. Coverage can't ever decrease; Policy can't expire at any age.

The cost of a modified life policy will usually be higher than a traditional life insurance plan after the period of lower premiums has ended.

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.

what does graded life insurance mean?

The bad: There are two significant drawbacks which are the waiting period & the premiums. These plans accept applicants who have severe health issues. For that reason, the insurance company takes on a lot of risks. This is why the premiums are much higher than non-modified policies and have a waiting period of 2-3 years before the death benefit would pay out.

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

Modified life policies are usually more expensive than traditional level life insurance plans after the period with lower premiums ends.

what does graded life insurance mean?
cash value life insurance

cash value life insurance

These are the costs of term life insurance. For a $500,000 term policy, a 35-year-old male must pay $30.44 monthly.

The company will determine the amount of interest granted. Understanding that the interest granted will be based on your premiums and not the death benefit.

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.

is it good to invest in variable life insurance?

how does the cash value of life insurance work?

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

These terms are simply marketing terms. They refer to a whole life insurance plan with limited underwriting so that people with medical conditions can still get coverage.

A whole life insurance policy in which the insured pays a lower premium than usual for a specific time. After that time, premium payments rise to an agreed-upon amount higher than usual over the policy'sPolicy's life.

what is a limited pay whole life policy?
what is a limited pay whole life policy?

It is important to remember that any policy purchased from a company without health questions will have a 2 to a 3-year waiting period.

Working with "captive agents" will limit your ability to sell one company. What if you have health problems?

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

interest sensitive life insurance

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.

While some companies charge as little as 8%, others charge as much as 30%. However, most companies offer 10% interest on premiums.

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. The initial savings may be tempting, but it's not the best life insurance policy for most people because of the high premiums and complicated policy options.

interest sensitive life insurance

Frequently Asked Questions



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.


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.