The lower rates you're charged early in your modified whole-life Coverage aren't a discount — you'll make up the difference with higher payments after the initial period ends.
Sorry, but a captive agent can't offer you any other insurance company.
Everything has its pros and con.
Remember that for any policy from any company where there are no health questions, there will always be a 2-3 year waiting period.
We'll show you the actual costs and explain how these plans work.
Committing to higher premiums in a few years, whether you can afford them or not
Modified life insurance is characterized by premiums that change over time, usually five to 10 years after the Policy begins.
Why is that so?
The lower rates you are charged early in your modified Whole-Life Coverage are not a discount. You'll make up any difference with higher payments once the initial period ends.
The two significant differences between traditional whole life insurance and modified whole life insurance are:
XYZ Insurance company doesn't like people with diabetes. They may deny them or charge much higher prices.
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.
First, a modified whole-life contract will almost certainly be available to you. One such exception would be life insurance for senior citizens over 80. Modified plans are generally only available to those who are 80 and younger.
Modified Life Insurance is characterised by changing premiums over time, typically five to ten years after the Policy was issued.
You can't contribute to the Policy's cash value during an introductory period with modified whole-life insurance policies.
Insurance companies prices and quality of life are significant factors in their competition.
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.
Premiums: Standard whole life insurance pays the same premiums, while modified whole life premiums vary once.
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.