Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Modified whole life policies are whole life policies that feature a different premium structure to make them more affordable during the early life of the policy. In short, the premiums are lower during the first 5 years of the policy and then increase to a specified amount for the remaining life of the policy.
Traditional whole life policies feature a fixed premium for the entire life of the policy (if it's a participating WL policy, then you may have the option to reduce the premiums over time using policy dividends - varies by carrier).
Modified Whole Life Insurance is really a company specific question. For one of the companies I work with, Modified Whole Life is designed for someone who has a medical history which most companies would decline or highly rate because of the medical history.
Modified Whole Life from my experience is a policy which if you were to pass away in the first 2 years, your beneficiaries would only get the premium back with some interest.
Oh ya, you are also restricted in how much Life Insurance you can get as well. These are not guaranteed issue policies however they are close.
.JPG){kind=avatar}
Traditional whole life policies feature a fixed premium for the entire life of the policy (if it's a participating WL policy, then you may have the option to reduce the premiums over time using policy dividends - varies by carrier).
Modified Whole Life from my experience is a policy which if you were to pass away in the first 2 years, your beneficiaries would only get the premium back with some interest.
Oh ya, you are also restricted in how much Life Insurance you can get as well. These are not guaranteed issue policies however they are close.