what is a modified benefit?

what is a variable life insurance policy?

Lastly, you may see companies refer to modified life plans as "final expenses life insurance", "funeral coverage", or "burial Insurance".

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

A modified whole-life insurance policy may be the best choice if you are looking for senior funeral insurance.

As with all things in life, there are pros and pitfalls.

The most important fact about life insurance is that there are many options.

But, you might be able to get better, cheaper policies that offer partial or complete coverage for the first two-year period.

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As we mentioned in this section of this article, some policies don't make you wait 2-3 years before the death benefit is payable.

This is undoubtedly true for modified whole life insurance.

However, you may be able to qualify for better, less expensive policies that offer full or partial Coverage during the first two years.

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what is the difference between universal life insurance and variable life insurance?

what is the difference between universal life insurance and variable life insurance?

For modified premium whole life, some companies have a 2-year waiting period, and some make you wait three years.

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.

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.

can i get life insurance if i've had cancer?

Your Policy will be cancelled if your premiums are not paid on time. You and your family may lose your Policy's financial protection.

Rejoice in the knowledge that a modified health plan is available, regardless of your current health.

Even though the differences may seem insignificant, they can immediately impact your finances. Although you won't lose much cash value over the two years, a more extended introductory period can cause you to fall behind. This will leave you without any critical policy features and cost five to fifteen times as much to obtain similar coverage under a term-life policy.

life insurance universal variable
life insurance universal variable

You may need senior funeral insurance. A modified whole-life policy might be the best option.

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.

XYZ, an insurance company, isn't too fond of people with diabetes. They may refuse to pay them or charge higher prices.

traditional whole life insurance

You can't contribute to the Policy's cash value during an introductory period with modified whole-life insurance policies.

ABC insurance is an example of a company that excels in ensuring people with diabetes. It also offers rock-bottom rates. This is the way their underwriting was designed.

This section will help you understand the details of these Plans, their actual prices, and whether this Policy is suitable for you.

what is a modified benefit?
traditional whole 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 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.