Modified Life Insurance at Life

Modified Life Insurance. Modified life insurance works just like a regular life insurance policy but it has lower premium prices for the first three to five years. Usually, your rates only go up once.

That’s where the term ‘modified’ comes into play. During the waiting period, which is usually 2 to 3 years, you have no death benefits. During this time, you’ll get all your premiums back with interest.

IRA Contribution and Limits for 2019 and 2020

Modified whole life insurance is a type of whole life insurance that offers lower premiums for a short time (usually two to three years), followed by a higher rate for the remainder of the policy. Modified life insurance — an ordinary life insurance policy with premiums adjusted so that, during the first 3 to 5 years, the premiums are lower than a standard policy, and, in subsequent years, the premiums are higher than a standard policy. Modified life insurance policies are mostly the same as traditional coverage. The policy is beneficial to the owner because premium payments are lower in the beginning policy years.