Like all things, there are pros and cons to everything.
Compare those costs to term life insurance, where the same 35-year-old male would pay $30.44 per month for a $500,000, 20-year term policy.
Losing out cash value savings is one of the main benefits of a whole life.
Losing out on cash value savings, one of whole life's main benefits
Meanwhile, XYZ insurance company isn't very fond of people with diabetes. They might deny them or charge them much higher prices.
If you are seriously considering a modified whole life policy, carefully review your budget and consult with a financial advisor to ensure it's the best choice for you and your family.
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".
If diabetes is a problem, your wallet and family will not appreciate XYZ because they'll refuse to treat you or charge you much more than ABC.
Are you curious about modified whole-life Insurance?
Cash value: Your premiums begin to fund your cash value account immediately with whole life insurance, but for most modified whole life policies, you will need to wait until your premiums go up.
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.
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.
ABC Insurance company is a leader in providing insurance for people with diabetes. Their underwriting is designed to do this.
These costs are comparable to term life insurance. A $500,000 policy for 20 years would cost $30.44 monthly.
In other words, if a company pays 10% interest and makes $1000 of payments, you will receive $1100 back.
The whole-life Policy is simple. Here are the details:
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?
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 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.