You’ve undoubtedly seen the commercials for whole life insurance, the ads that promise your loved ones won’t have to worry about their financial future because you’re “only one call away”.
So what is it, and why should you buy it? Modified whole life insurance is a type of whole life insurance that provides all the same protections as regular whole life insurance with some added benefits.
This blog post will tell you exactly how these policies work and why they may be a good idea for your needs.
Modified Whole Life Insurance Defined
Modified whole life insurance is basically the same as regular whole life insurance, the only difference is that you can choose from a number of options to adjust your coverage in various ways. There are term life insurance policies that offer similar features, but there are some differences that may make modified whole life insurance a better option for you.
What are Some Advantages of Modified Whole Life Insurance?
One of the main benefits of this type of policy can be found in the cost: whole life is just about always more expensive than term. This isn’t always the case, but it’s generally true across the board. You can typically get a whole life policy for less than $1,000 which means you could save hundreds or thousands of dollars by choosing this type of coverage.
You should also know that there are ways to modify your whole life policy to make it more affordable, including lowering your interest rate if you choose this option. This can be an attractive option for those that want to purchase a policy but may not know if they need it or how much insurance they will need.
What Are Some Disadvantages of Modified Whole Life Insurance?
Unfortunately, while cost savings and flexibility are interesting options, there are some disadvantages too. First, the interest rate tends to be higher on this type of policy. If you have a really low-interest rate, it may make sense to go with the term, even if you’re going to pay more.
Also, while these policies are more flexible than some other types of insurance like terms, they still have restrictions. There is typically a limit on how much you can raise your premiums in any given year. This can make it difficult if you’re making large purchases or getting married and then having children. You may not be able to afford the premium increase out of pocket.
How Does Modified Whole Life Insurance Work?
You see whole life insurance ads everywhere because many people find them attractive and useful for their needs.
We hope you enjoyed the blog post. Whole life insurance can be a good option for some people, but not for all. In some cases, it may be worth looking into other options such as term life insurance, which is cheaper and more available these days.
Then again, who knows? Whole life insurance may be exactly what you are looking for. If you have any questions or concerns, feel free to reach out to us. Thank you for reading, we hope you found the blog post helpful!