Modified Whole Life Insurance
Modified whole life insurance is more properly called modified premium whole life insurance since, unlike standard policies, the premium payments are not fixed over the life of the policy. Modifications include single premium whole life insurance, limited payments whole life insurance and policies which have lower premiums for the first several years which increase over time. Many companies will tailor modified payments to meet the individual needs of the policyholder, making modified whole life insurance flexible and affordable for you and your family.
Single Premium Life Insurance
Single premium life insurance is a form of modified whole life insurance where the entire premium amount is paid in a lump sum, most of which makes up the cash value of the life insurance policy. This type of policy is most often used as an investment or in estate planning because the returns on life insurance accounts are tax deferred and the death benefits are tax exempt. Costs for administering the policy are deducted from the payment and a guaranteed compound interest rate is paid on the cash in the policy.
Limited Payment Life Insurance
Most whole life insurance policies require that fixed premiums be paid for the insured person’s entire lifetime. Limited payment modified whole life insurance has higher payments than standard whole life insurance policies, but premiums are only paid for a certain period of time, usually 20 or 30 years, after which the policy is permanent and no further payments are due. Limited payment whole life policies also have a cash value and interest payments on the insurance account continue after the policy is paid in full. Though this policies whole life insurance rates are accelerated and may cost more upfront and initially, in the long term, limited payment life insurance pays off with a larger accrued cash value.
Other Modified Payment Life Insurance
Young adults who want whole life insurance may find the cost is unaffordable and beyond their current income. Some modified whole life insurance policies start with lower life insurance rates than standard whole life policies and then have higher premiums after three years. While the early premium payments may be lower than standard whole life insurance, later payments may be higher to make up the difference in premiums. Not all life insurance companies offer this modification on their whole life insurance policies, so it may be necessary to shop around and compare life insurance quotes to find other carriers that offer cheap rates as well.
Why Choose Modified Life Insurance?
Each modified whole life insurance policy offers many pros and cons. A limited payments life insurance plan offers permanent life insurance without the need to continue making monthly premium payments for your entire lifetime, making it ideal for individuals who are planning for retirement and want to limit long term expenses. The tax advantages of whole life insurance make it a great tool for financial and estate planning and the insured person continues to maintain control over the cash value in the policy until the equity of the policy is withdrawn and the policy lapses, or he or she dies.
Whole Life Insurance Quotes
Because of the many advantages of whole life insurance, life insurance rates for whole life policies are not as cheap and affordable as term life insurance, which does not have a cash value that can be used as a life insurance investment. Modified whole life insurance offers other benefits over term life and standard whole life insurance policies since the modified policies can be paid up with no need for additional payments.
In addition, the whole life insurance cash value is a long term investment which can provide emergency funds in the form of low interest loans without the need to withdraw policy equity. As a tool in estate planning, whole life insurance is a safe, near risk-free investment with returns comparable to other investments, and death benefits are exempt from estate and income taxes so heirs receive the full benefit.
Because whole life insurance may be the best type of life insurance for certain individuals, adults, and families, getting and comparing whole life insurance quotes is essential to finding affordable rates. By entering your zip code, WholeLifeInsurance123.com can provide consumers free, instant whole life insurance quotes to compare rates, policies, coverage, and insurance companies to find the best whole life policies available.
Even if consumers end up choosing another type of life insurance to purchase, we offer life insurance quotes for term, universal, and variable life insurance policies as well, helping all consumers find cheap life insurance rates no matter what policy or insurance company they choose.
Start a life insurance quote now and compare rates and life insurance companies to find the best, affordable policies for your needs.
