what is modified life insurance

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

As mentioned in the previous section, not all policies require that you wait two years before your death benefit becomes payable.

A modified whole life insurance policy is something you should seriously consider.

what is modified life insurance

This is in contrast to traditional or level-life insurance policies, where premiums are locked and remain the same for a long time.

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.

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

graded premium whole life

Insurance companies can cover every health concern. They have to pick where they are willing to compete for particular conditions.

Be it Coach B. or another agency, the only way for you to truly get the best Coverage at the lowest rate is by working with an independent agency that will review 15 or more life insurance companies on your behalf.

Most people shouldn't buy a modified whole life insurance policy. Traditional whole life is already more expensive and complex than you probably need. If you buy a modified whole life policy, you're:

graded premium whole life
dependency period insurance

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A captive agent is unable to offer you an alternative insurance company.

Be aware that there is a 2-year waiting period for all company policies where there are no questions about your health.

Compare these costs with term life insurance. The same 35-year-old male would pay $30.44 monthly for a $500,000 20-year policy.

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As a short recap, there are partial coverage plans that payout a portion of the death benefit during the first two years and there are plans that will pay out 100% of the benefit right away.

Unfortunately, a captive agency cannot offer another insurance company to you.

As mentioned in this section, some policies don't require waiting for the death benefit to become payable.

advantages of whole life insurance
advantages of whole life insurance

Some modified whole-life policies won't let you contribute to your Policy cash value during the initial period.

No insurance company can cater to every single health issue. They have to choose where they compete for specific health conditions.

Some companies offer a two-year waiting period for modified premium whole lives, while others require you to wait three years.

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For example, ABC insurance company excels at ensuring people with diabetes and offers them rock bottom rates. Their underwriting is set up to work that way.

Lastly, you might see some companies refer to modified whole life plans as "final expense life insurance ", "funeral insurance", or "burial insurance".

Meanwhile, XYZ insurance company isn't very fond of people with diabetes. They might deny them or charge them much higher prices.

what is the difference between universal life insurance and variable 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.