Well, too bad you're out of luck because a captive agent cannot offer you another insurance company.
XYZ insurance doesn't seem to like people with diabetes. They might refuse to cover them or charge them higher prices.
This is undoubtedly true for modified whole life insurance.
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.
Sorry, but a captive agent can't offer you any other insurance company.
This is in contrast to traditional or level-life insurance policies, where premiums are locked and remain the same for a long time.
The prices can't rise over time. The Policy can't be cancelled or reduced; it can't expire.
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).
Answering health questions is necessary if you desire immediate coverage. There are no exceptions.
The bad news: These plans come with two serious drawbacks, the premiums and the waiting period. These plans allow applicants who have serious health problems to apply. The insurance company accepts many risks because it takes on a lot. These premiums are often higher than for non-modified policies. They also have a waiting period of up to 2 years before the death benefit is paid.
These are all marketing terms which mean the same thing. These terms refer to whole life insurance plans with limited underwriting. People with certain health conditions may still be eligible.
First, a modified whole-life contract is almost sure to be available. Life insurance for seniors aged 80 and over is an exception. Modified plans generally are only available to people who are older than 80.
Compare these costs with term life insurance. The same 35-year-old male would pay $30.44 monthly for a $500,000 20-year policy.
We mentioned that some policies do not require you to wait two years for your death benefit to be payable.
The Modified Benefit Option (MBO) allows full-time employees in eligible classifications to earn a higher hourly rate of pay (above base pay).
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.
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.