how does the cash value of life insurance work?

This is a version of whole-life insurance where the insured pays less than usual for a set amount of time. The premium payments will increase to an agreed-upon amount for the Policy's life.

In reality, these are all marketing terms meaning the same thing. They are referring to a whole life insurance plan with limited underwriting. This means that even people with severe health problems can still be eligible.

For example, if a company grants 10% interest and you made $1000 in payments, you will get back $1100 (if death occurred during the waiting period).

Modified Life Insurance — an ordinary life insurance policy with premiums adjusted so that the premiums are lower during the first 3 to 5 years than a standard policy. In subsequent years, the premiums are higher than a standard policy.

Last but not least, some companies might refer to modified whole lives plans as "final expense life insurance", "funeral Insurance", or "burial coverage".

The loss of cash value savings is one of the most significant benefits of life.

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

XYZ Insurance company doesn't like people with diabetes. They may deny them or charge much higher prices.

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