what is the difference between modified life insurance and whole life insurance?

The good thing about a whole-life modified policy is that people with severe health conditions can obtain new coverage. Modified life plans usually have little or no medical/lifestyle insurance. You can still get new coverage even if your condition is severe. Depending on your current health condition, you may need to modify your whole life.

Summary: There are partial coverage plans which pay a portion or all of the death benefit within the first two years. However, plans that pay 100% of the benefit immediately after the death are over will also be available.

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.

The good news is that people with serious medical issues can get new coverage through a modified whole-life plan. Most modified life plans do not require any medical/lifestyle underwriting. Even if you have a severe illness, you may still be eligible for new coverage. Modified whole life could be the only option to obtain a new policy, depending on the severity of your health problems.

Your premiums start to fund your cash-value account immediately with whole-life insurance. For most modified whole-life policies, however, you will need to wait until your premiums increase.

Be it Coach B. or another agency, the only way for you to truly get the best Coverage at the lowest rate is by working with an independent agency that will review 15 or more life insurance companies on your behalf.

It is important to remember that any policy purchased from a company without health questions will have a 2 to a 3-year waiting period.

You might also see modified whole-life plans referred to by some companies as "final cost life insurance", "funeral insurance", "burial insurance", or "funeral insurance".

These differences, while small in size, can significantly impact your financial situation. Even though you might not lose cash value growth for two years, an extended introductory period may cause you to be less successful. While you won't lose any critical policy features, you will pay five to 15 times more to get the same coverage under a life insurance policy.