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".
Committing in a few decades to higher premiums
Well, too bad you're out of luck because a captive agent cannot offer you another insurance company.
Why are we saying that?
A quick recap: There are two types of partial coverage plans. One pays a portion of your death benefit for the first two years, and another pays 100% immediately.
If you have diabetes, XYZ company will charge more for you than ABC company.
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.
If you are looking for immediate coverage, you will need to answer some health questions. There are no exceptions.
Coach B. and other agencies, you can only get the best coverage for the lowest rate if you work with an independent agency. This agency will review at least 15 life insurance companies on your behalf.
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.
Last but not least, some companies might refer to modified whole lives plans as "final expense life insurance", "funeral Insurance", or "burial coverage".
Premiums are generally stable for the duration of the Policy after they have increased. Premiums usually rise once.
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?
You are missing out on one of your most excellent life-enhancing benefits
However, you may be able to qualify for better, less expensive policies that offer full or partial Coverage during the first two years.
Besides the premium payment schedule, modified whole life policies function similarly to traditional whole life policies. Modified whole life insurance builds cash value you can borrow against like a loan. You can also withdraw money from the cash value — minus any surrender fees.
In what situation could an insurance policy's coverage be modified? The applicant is a substandard risk. The principal source of information concerning an applicant's identity, age, and marital status is found in the?
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.