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

A "captive agent" is someone who can only sell you one company. What if the company you are working with doesn't like your health?

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

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Coach B. and other agencies, you can only get the best coverage for the lowest rate if you work with an independent agency. This agency will review at least 15 life insurance companies on your behalf.

So if you want immediate Coverage, you have to answer health questions. There are no exceptions to that rule.

A modified policy is a type of final expense insurance.

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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.

The cash value of your whole life insurance is. You can have your cash value account funded immediately by your premiums. However, for most modified whole-life policies, you'll need to wait until the premiums increase.

Some companies go as low as 8% and others as high as 30%, but most companies grant 10% interest on your premiums.

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modified premium whole life insurance

Cash Value: With whole life insurance, your premiums will immediately fund your cash account. But, for most modified policies, you will have to wait until your premiums rise.

Modified whole Insurance provides lower premiums for a limited time (usually 2 to 3 years, but occasionally up 5 or 10). Then the Policy will continue at a higher rate. Although it may offer some savings, the complexity of the policy options and high premiums make it not the best option for life insurance.

You still pay more for your coverage than for term life insurance

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Prices cannot increase over time. There is no way to decrease coverage; the Policy cannot be cancelled at any time.

Below are a few common health issues you could likely qualify for a non-modified whole-life policy.

Some companies offer as low as 10% and others as high as 30%. Most companies, however, grant 10% interest for your premiums.

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what can life insurance be used for?

Life insurance is not for everyone.

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.

Premiums: Standard whole life insurance has the same premiums for your entire Policy, whereas modified whole life premiums change once.

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

Insurance companies that offer life insurance compete on price and underwriting.

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

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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.



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.