The good news is: People with serious health problems can still get new coverage through a modified whole-life plan. Modified life plans often have minimal or no medical/lifestyle coverage. You can still obtain new coverage even if you suffer from serious illnesses. Modified whole life may be the best way to get new insurance, depending on your medical condition.
Losing out cash value savings is one of the main benefits of a whole life.
Just like most things in life, everything has its pros and cons.
Rejoice in the knowledge that a modified health plan is available, regardless of your current health.
As with all things in life, there are pros and pitfalls.
Insurance companies can cover every health concern. They have to pick where they are willing to compete for particular conditions.
These terms are simply marketing terms. They refer to a whole life insurance plan with limited underwriting so that people with medical conditions can still get coverage.
Like all things, there are pros and cons to everything.
Your Policy may be cancelled if premiums don't go up. Also, you could be subject to high surrender costs. Even more important, your family could lose their financial protection.
You must be eligible for immediate coverage policies. Although you won't need to take an exam to be approved, you must answer specific health questions.
You will still be paying more for your coverage.
This contrasts with traditional or level life insurance policies, where premiums are locked in and stay the same over time.
Securing higher premiums over the next few years, regardless of whether or not you have the means to pay them
A version of a whole life insurance policy where the insured pays less premium than usual for an agreed-upon amount of time. After that period, the premium payments increase to an agreed-upon amount that is higher than usual for the life of the Policy.
Last but not least, some companies might refer to modified whole lives plans as "final expense life insurance", "funeral Insurance", or "burial coverage".
Everything has its pros and con.
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.
You would get the best Policy with the company offering the best rates, coverage, and support for diabetics.
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.
Is modified whole life insurance interest-sensitive? No, a modified whole life policy does not interest sensitive. It will build up a cash value that grows every time you make payment.