what is modified life insurance

flexible premium variable life insurance

A whole life policy is quite simple. Here's what you need to know about whole life insurance policies:

So rejoice in knowing that a modified plan is an option no matter how bad your health is.

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

The following are some common issues that you may be able to qualify for a non-modified whole-life policy.

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

Premiums: Standard whole life Insurance has the same premiums, but modified whole life premiums change only once.

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The Cash value increases that you can borrow.

Modified life policies are usually more expensive than traditional level life insurance plans after the period with lower premiums ends.

Coach B. data shows that a $35-year-old male with no complex health problems would pay $517 per month for a $500,000 life insurance policy. While you might pay less for the first few years of a modified whole-life policy, you will pay more over time.

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equity indexed universal life insurance pros and cons

equity indexed universal life insurance pros and cons

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.

Your premiums start to fund your cash-value account immediately with whole-life insurance. For most modified whole-life policies, however, you will need to wait until your premiums increase.

The death benefit protection stays the same, but the premiums aren't level.

what is modified life insurance

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While the differences may seem small, they can have a tangible impact on your finances. You may not lose out on much cash value growth over two years, but a more extended introductory period can set you back. And you'll be going without a critical policy feature while paying five to 15 times more than it costs to get similar Coverage under a term life policy.

Still paying much more for your coverage than you would for term life insurance

ABC Insurance Company is an excellent example of how to ensure people with diabetes. They also offer rock-bottom rates. This is how their underwriting works.

outline of coverage
outline of coverage

These differences, while small in size, can significantly impact your financial situation. Even though you might not lose cash value growth for two years, an extended introductory period may cause you to be less successful. While you won't lose any critical policy features, you will pay five to 15 times more to get the same coverage under a life insurance policy.

Working with "captive agents" will limit your ability to sell one company. What if you have health problems?

What's the point?

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The good news is that people with serious medical issues can get new coverage through a modified whole-life plan. Most modified life plans do not require any medical/lifestyle underwriting. Even if you have a severe illness, you may still be eligible for new coverage. Modified whole life could be the only option to obtain a new policy, depending on the severity of your health problems.

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.

Modified lifestyle insurance has premiums that fluctuate over time. Usually, this happens between 5-10 years after the Policy is started.

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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.