What Is Modified Whole Life Insurance? [Secrets Revealed]

modified whole life

Are you looking for a quote for life insurance or burial insurance? Click here and send me a message with your details. If you’d prefer to speak with me directly, call 888-626-0439.

Chances are you’re here because you or a loved one like your mom or dad has been approved for modified whole life insurance.

Or perhaps you simply want to learn more about how this particular life insurance program works. Then keep reading! 

Because the TRUTH is…

Modified whole life insurance is NOT appropriate for everyone.

Here’s my promise:

By the conclusion of this post, you’ll have a clear understanding of:

  • What modified whole life insurance is,
  • How the “fine print” REALLY reads,
  • Who it’s a good fit for,
  • Who it is NOT a good fit for, and,
  • How you can apply for coverage.

Let’s get started!

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What Is Modified Whole Life Insurance?

“Modified” whole life insurance has an initial “modified” level of coverage that typically lasts a specific number of years at the beginning of the insurance policy.

Modified Whole Life Insurance Can Also Be Called → Graded Life Insurance → Return of Premium Whole Life Insurance

NOTE: If the words above describe your life insurance policy, please listen closely.

The Good News

With these kinds of life insurance policies, the premium rate can NEVER increase.

Also, with a whole life plan of any kind, modified, graded, or return of premium, your policy CANNOT cancel due to age or health as long as you pay the premium, of course!

What’s The Catch?

Yes, you guessed it! The devils in the details, or so they say. Keep reading to find out the hidden truth behind modified life insurance plans.

Modified Whole Life Insurance – Pros And Cons

Let’s look at the benefits of modified life insurance first! 

Benefit #1 – Great for Anyone Struggling to Qualify

Modified whole life insurance is SUITABLE for anyone who cannot qualify for other life insurance programs.

For instance, let’s say you have several chronic health issues. If I recommended a traditional life insurance company, you’d be DECLINED in a heartbeat. Why?

Because most severe, chronic illnesses are knockouts. Either you fail to secure approval, or the rates will be so astronomically high that only the very wealthy could afford them.

This is where a modified life insurance policy can come in handy. 

The underwriting process for a modified whole life insurance plan is MUCH less restrictive!

Applicants can receive approval for a range of chronic health issues that a traditional insurance plan would NEVER consider approving. 

Benefit #2 – Coverage & Premium Guarantees

modified whole life

And because it’s a whole life insurance plan, it offers the same advantages.

Once approved for coverage, your premium is locked in. There’s never a price increase.

If you’re living on a fixed income, you’ll love having a fixed rate, unlike many seniors who, unfortunately, have a term insurance plan.

Term insurance plans sometimes have price increases.

Companies like Globe, AARP, and TruStage usually have steep price increases every five years. If you’re on a fixed income, that can be TOUGH.

Modified whole life insurance plans NEVER cancel due to age or health.

As long as you keep paying the premium on time each month, you will have insurance for life! 

The Cons Of Modified Whole Life Insurance

Are you thinking, “Dave, I thought there was a CATCH! So far, it sounds alright!”

Well, that’s true! But there are always GOOD things and BAD things with any insurance plan. So let’s take a look at some of the drawbacks now. 

Drawback #1 – No Full Natural Death Benefit Coverage!

Whether your life insurance is referred to as “modified,” “graded,” or “return-of-premium,” your coverage is LIMITED for the first two years!

Sometimes these plans are also called “guaranteed acceptance” or “two-year waiting period policies.”

How does this affect you? Well, if you die from natural causes within the first two years, you won’t receive your full death benefit. Instead, your beneficiary will receive your paid-in premiums plus some interest. 

You might be thinking, “I’m healthy; that’s not a problem!”

Well, are you 100% sure nothing bad could happen? I’ve seen limitations for coverage last FOUR YEARS! 

Imagine you suddenly have a stroke or come down with terminal cancer. It happens! You should never bet your life on anything, no matter how healthy you are. 

If you’re NOT covered from DAY ONE, is modified life insurance the RIGHT choice?

This is why I prefer not to offer modified whole life insurance plans to my clients.

Drawback #2 – High Premiums

insurance premiums

We’ll go into more detail on this when we compare rates on different graded and modified plans.

Drawback #3 – Limited Ability For Higher Amounts Of Coverage

Graded whole life insurance products typically limit coverage to smaller amounts.

This is a win for anyone looking for $5,000 or anything under $10,000. However, if you need a substantial amount of coverage, then a modified life insurance product won’t be the best choice.

Drawback #4 – You Could Do *Better Than a Modified Plan

There are thousands of people with modified whole life insurance that could EASILY have qualified for first-day natural death life insurance coverage.

Let me give you an example.

I know an agent who sells modified whole life insurance and whole life insurance with first-day full natural death cover.

About 30% of her clients sign a modified whole life insurance plan and “agree” to wait for two years before they’re covered. 

And since this agent only works under one company (she’s not a broker), I know for a fact that plenty of her clients with modified whole life insurance could EASILY qualify for something better.

But, this agent REFUSES to shop around (like I do) and find the best price for each client.

Our team at Buy Life Insurance for Burial shops the most competitively-priced options available to offer people the best possible coverage. 

Let us do this for you. The first step takes only 10 minutes, and we’ll provide you with a free quote.

If you are interested, please call (888) 626-0439. Or submit a message on the left-hand side of the screen. We’ll get back to you ASAP.

Look. You’re the boss. 

In the end, it’s your choice. But I still think you should research the pros and cons of modified whole life insurance pros before deciding. 

Surely you want to secure the BEST deal possible, right? Don’t gamble with your life insurance if there are better options available! 

At Buy Life Insurance For Burial, we believe that life insurance should match the client’s goals, which is why we have access to various companies to secure you the best policy at the best price possible. 

Story From The Field

I’d like to use this opportunity to share with you something that happened early in my career.

I was in Tennessee and came upon a rural neighborhood. I met two sisters and their uncle, who they wanted to get coverage for. He had some health-related issues, but nothing serious.

As he was financially dependant on them, they knew he would need insurance to cover funeral expenses. They wanted him to have a proper burial when the time came to say goodbye. 

Luckily, I was able to qualify their uncle for first-day full coverage, regardless of his minor health issues.

Two years later, I received a message from the sisters saying their uncle had passed away.

Thanks to the company I was working for, the two sisters received half of the death benefit within 24 hours! They promptly received the rest with a couple of weeks. 

This moment truly helped me understand how vital life insurance is. It can change people’s lives and allow people to say goodbye without worrying or bickering about money. 

I watched a life insurance policy I sold come to life and take care of them, and I was proud I had a role in that.

Let’s circle back now to modified whole life insurance. 

Now that you have all the facts, I truly hope you’ve come to understand the importance of getting quality insurance that suits your goals at an affordable price.

Don’t settle for an inadequate policy that forces you to wait two years! 

If you want to get the best coverage and price, I encourage you to work with a broker, like our team at Buy Life Insurance for Burial.

We can help you tailor your policy to your specific needs and budget. Plus, knowing that you and your family are protected will give you tremendous peace of mind.

When Is A Modified Insurance Plan Be An Option?

modified life insurance

When we’re absolutely damn sure that NO full-coverage plan would work, then we will consider modified life insurance. 

If you currently have a modified whole life insurance plan, I hope you worked with a broker that carefully considered all of your options before recommending it!

Unfortunately, if you worked with a captive agent instead, there’s a high chance you got stuck with the short end of the deal. 

Health Conditions That Suit Modified Whole Life Insurance

75 Year-Old Female Factors That Affect Insurability

While many health conditions suit modified policies, I will focus on the most common health conditions.

1. Cognitive Memory Disorders

Cognitive memory disorders are usually approved with modified whole life insurance products since any cognitive memory disorder will NEVER qualify for first-day full coverage.

2. Kidney Failure

Specifically if you’re on dialysis, most insurance companies will not offer you first-day full coverage. You’re stuck with a modified option or some sort of guaranteed issue coverage.

3. Supplemental Oxygen Usage

If you use an oxygen tank to supplement your breathing, you’ll need to look for no-questions-asked whole life insurance since no company will cover you from day one.

4. Terminally Ill

If you’re terminally ill, in a nursing home, or confined to your wheelchair, a modified plan makes the most sense.

Health Conditions That DON’T Suit Modified Whole Life Insurance

Or should I say, health conditions that could qualify for something better, much better! Let’s explore our options. I think you’ll like what you’re about to hear 😃

1. Diabetes

No joke! I have hundreds of clients with diabetes EASILY approved for first-day full coverage. And MANY life insurance carriers even include individuals who take insulin and have diabetic neuropathy!

In most cases, these people qualify for preferred, first-day FULL coverage instantly.

2. Cancer History

I’ve helped HUNDREDS of cancer survivors qualify for first-day full coverage life insurance.

The “catch” is that you have to be out of treatment for a minimum of 2 years. If that’s not the case for you, then a no-questions-asked life insurance plan is your best deal.

3. Heart Health History

If you’ve ever had any of the following conditions, you MAY be able to qualify for first-day full coverage life insurance:

  • Heart Attack
  • Stroke
  • Stent
  • Bypass
  • Seizure
  • Aneurysm
  • Pacemaker
  • Atrial Fibrillation

The main thing we’re looking for is at LEAST 12 months (in some cases, 24 months) to pass before my companies are willing to qualify you.

4. Lung Disease

As long as you’re not using supplemental oxygen, lung diseases such as the following are usually OK for first-day full coverage:

  • Chronic obstructive pulmonary disease (COPD)
  • Chronic bronchitis
  • Sarcoidosis
  • Emphysema

A great example of this was a 38-year old mother in Kansas. She had a pulmonary embolism, COPD, and took warfarin to control the blood clot in her lungs.

But, at Buy Life Insurance For Burial, she was FULLY covered with one of my insurance products!

5. Mental Health Disorders

Yes, even common mental health disorders (as long as you’re not suicidal) can qualify for first-day full coverage, including the following conditions:

  • Anxiety
  • Severe anxiety
  • Clinical depression
  • Mildly or severe depression
  • Post-traumatic stress disorder (PTSD)
  • Schizophrenia
  • Bi-polar

6. Neurological Disease

Neurological problems such as systemic lupus and Parkinson’s will usually qualify for first-day full coverage.

In truth, MANY more health conditions CAN be covered for first-day full natural death coverage!

How Do You Find Something Better Than Modified Whole Life Insurance?

Work with a broker like Buy Life Insurance For Burial, of course. 😃 I can help you discover which options are right for you!

Which Companies Offer Modified Whole Life Insurance?

Whether you want to take out coverage with them or avoid them ENTIRELY, it’s a good idea to find out what companies push modified whole life insurance. Let’s jump in!

Colonial Penn Life Insurance

Colonial Penn

This is one of the most well-known companies that offer modified whole life insurance. Colonial Penn is probably the biggest provider of two-year waiting period policies.

Although Colonial Penn calls their product “Guaranteed Acceptance Life Insurance,” it functions EXACTLY like a modified whole life insurance product.

Bottom line: you could probably do better. WHY?

Because EVERYONE who applies for Colonial Penn’s Guaranteed Acceptance Life Insurance Product MUST wait two FULL years before receiving full natural death coverage.

And like I mentioned earlier, there’s a GOOD chance you can qualify for first-day full coverage for natural death (even with health issues!)

Mass Mutual

Like Colonial Penn, Mass Mutual offers a two-year waiting period “Guaranteed Issue” product.

Physician’s Mutual

It’s the same with Physician’s Mutual Guaranteed Whole Life product.

While they have products that provide first-day full coverage, they commonly mail seniors about their two-year waiting period plans, advertising that it’s a “no-questions-asked” life insurance deal.

That’s why everyone should work with a broker like us at Buy Life Insurance For Burial. A broker will ensure you get the best deal possible. 

5 Reasons To Apply For First-Day Full Coverage Whole Life Insurance

1. The Paid-up Aspect

This point is unique to a whole life insurance policy. 

You can design your whole life insurance plan to include a paid-up aspect. This means, after a certain amount of time (around 10-20 years), your premiums will end, but you still have coverage!

2. Tax-free Cash Value

This surprises many people as they find it to be quite lucrative. 

When designing a whole life insurance plan, it’s possible to develop cash value.

Some policies offer an option where dividends increase the plan’s cash value, and this amount can be loaned to you (tax-free) if you need it, in any circumstance. 

3. Rates Don’t Increase

Most whole life programs allow you to choose guaranteed premiums that won’t increase due to your age or health.

4. A Permanent Solution

First-day full coverage whole life insurance is a permanent solution to a permanent problem. 

Everyone will die at some point, and these days, final expenses are becoming more and more expensive. Luckily, whole life insurance guarantees your family will receive prompt financial aid when you pass. 

5. It Doesn’t Cancel

First-day full coverage whole life insurance can NEVER cancel due to age or health. Unlike term insurance, you can never outlive the policy. 

How Much Coverage Does Modified Life Insurance Give?

Replacing your income is a leading reason why people purchase term life insurance.

Okay, let’s shift gears back to modified life insurance and imagine you have no choice. How much coverage can you apply for? 

Coverage Maximums

Some modified whole life insurance programs cap coverage maximums at $10,000.

If you need more than $10,000 in coverage but have a condition that only modified whole life insurance will approve, contact us at Buy Life Insurance For Burial. 

We have access to carriers that will write well above $25,000!

Coverage Minimums

Our team has access to carriers that provide as little as $1,000 in life insurance coverage, ideal for an inexpensive direct cremation.

At Buy Life Insurance For Burial, we can get YOU the amount of coverage you need!

What Can My Coverage Pay For When I Pass Away?

pre need insurance

This is true for a modified life insurance product.

As with any life insurance contract, the policy will pay the death benefit to the named beneficiary. What the beneficiary does with the money is ENTIRELY up to them.

Of course, with expensive final costs to cover, in most cases, the death benefit will pay for every cost associated with your funeral service. 

What if you want to pay off debt? You can ask your beneficiary to use the death benefit to do so.

What if you want your family to “have fun”? That’s fine, too!

The point is it’s the beneficiary’s choice. Technically it’s their money, after all. 

That’s why you should ALWAYS choose a beneficiary you COMPLETELY trust! 

Burial Insurance Rates, Age 40 to 90*

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$5000 Mutual of Omaha Monthly Rate Chart

AgeMale, SmokerMale, Non-SmokerFemale. SmokerFemale, Non-Smoker
45$17.22$14.32$15.67$12.91
46$17.70$14.69$15.99$13.11
47$18.29$15.11$16.37$13.38
48$18.93$15.58$16.74$13.69
49$19.39$15.86$17.02$13.84
50$20.05$16.18$17.31$13.94
51$21.04$16.75$18.05$14.33
52$21.85$17.16$18.53$14.54
53$22.90$17.70$19.26$14.91
54$23.99$18.41$19.93$15.33
55$25.24$19.15$20.76$15.80
56$26.33$19.83$21.39$16.24
57$27.37$20.55$21.96$16.63
58$28.41$21.24$22.53$17.02
59$29.65$22.01$23.15$17.45
60$31.11$22.98$23.94$18.04
61$33.09$24.29$25.08$18.86
62$35.11$25.55$26.22$19.63
63$37.09$26.86$27.37$20.46
64$39.12$28.17$28.46$21.28
65$41.10$29.48$29.60$22.11
66$43.85$31.27$31.37$23.32
67$46.66$33.07$33.14$24.53
68$49.42$34.87$34.91$25.75
69$52.17$36.66$36.68$27.01
70$54.98$38.45$38.44$28.22
71$58.62$40.78$40.99$29.92
72$62.31$43.06$43.49$31.66
73$66.00$45.61$46.04$33.57
74$69.64$48.18$48.53$35.49
75$73.34$51.37$51.08$37.81
76$77.96$55.04$54.41$40.73
77$82.97$58.42$58.00$43.36
78$88.09$61.53$61.62$45.82
79$93.19$64.72$65.28$48.31
80$98.34$67.93$68.97$50.82
81$106.65$73.10$74.27$54.71
82$115.56$78.37$79.99$58.58
83$124.54$83.31$85.70$62.26
84$132.94$88.24$91.05$65.88
85$141.39$93.18$96.45$69.55

$10000 Mutual of Omaha Monthly Rate Chart

AgeMale. SmokerMale, Non-SmokerFemale, SmokerFemale, Non-Smoker
45$31.24$25.45$28.14$22.61
46$32.20$26.17$28.78$23.02
47$33.38$27.02$29.53$23.55
48$34.67$27.96$30.28$24.18
49$35.57$28.52$30.83$24.48
50$36.89$29.16$31.43$24.67
51$38.88$30.30$32.89$25.45
52$40.50$31.12$33.85$25.88
53$42.59$32.20$35.31$26.62
54$44.77$33.61$36.66$27.47
55$47.27$35.09$38.32$28.40
56$49.45$36.45$39.57$29.27
57$51.53$37.91$40.72$30.06
58$53.61$39.27$41.86$30.83
59$56.11$40.82$43.10$31.70
60$59.02$42.76$44.67$32.87
61$62.97$45.38$46.96$34.51
62$67.03$47.90$49.24$36.06
63$70.98$50.52$51.53$37.72
64$75.04$53.14$53.71$39.36
65$78.99$55.76$56.00$41.01
66$84.50$59.35$59.54$43.44
67$90.11$62.93$63.07$45.86
68$95.63$66.53$66.61$48.29
69$101.14$70.11$70.15$50.81
70$106.76$73.70$73.68$53.24
71$114.04$78.36$78.78$56.63
72$121.42$82.92$83.77$60.12
73$128.80$88.01$88.87$63.93
74$136.08$93.16$93.86$67.78
75$143.47$99.53$98.95$72.41
76$152.72$106.87$105.61$78.25
77$162.75$113.64$112.80$83.51
78$172.97$119.86$120.04$88.44
79$183.17$126.23$127.36$93.41
80$193.47$132.65$134.74$98.43
81$210.10$143.00$145.34$106.21
82$227.91$153.54$156.77$113.96
83$245.88$163.41$168.20$121.31
84$262.68$173.28$178.90$128.55
85$279.58$183.15$189.70$135.90

$15000 Mutual of Omaha Monthly Rate Chart

AgeMale, SmokerMale, Non-SmokerFemale, SmokerFemale, Non-Smoker
45$45.26$36.57$40.61$32.31
46$46.70$37.66$41.57$32.93
47$48.47$38.93$42.69$33.72
48$50.40$40.34$43.81$34.67
49$51.76$41.18$44.64$35.12
50$53.73$42.13$45.54$35.40
51$56.72$43.85$47.74$36.58
52$59.15$45.08$49.17$37.22
53
$62.28$46.70$51.36$38.33
54$65.55$48.81$53.39$39.60
55$69.30$51.04$55.88$41.00
56$72.57$53.08$57.75$42.31
57$75.69$55.26$59.47$43.48
58$78.82$57.30$61.18$44.64
59$82.56$59.62$63.05$45.95
60$86.92$62.53$65.40$47.70
61$92.85$66.47$68.83$50.17
62$98.94$70.25$72.26$52.49
63$104.86$74.17$75.69$54.98
64$110.95$78.11$78.97$57.45
65$116.88$82.04$82.40$59.91
66$125.14$87.42$87.71$63.56
67$133.57$92.80$93.01$67.19
68$141.84$98.19$98.31$70.84
69$150.11$103.57$103.62$74.61
70$158.53$108.95$108.92$78.26
71$169.45$115.93$116.57$83.34
72$180.53$122.78$124.05$88.58
73$191.60$130.42$131.70$94.29
74$202.52$138.13$139.19$100.07
75$213.60$147.69$146.82$107.01
76$227.48$158.70$156.81$115.77
77$242.52$168.86$167.60$123.66
78$257.86$178.18$178.46$131.06
79$273.15$187.74$189.44$138.52
80$288.60$197.38$200.50$146.05
81$313.55$212.89$216.40$157.72
82$340.26$228.71$233.56$169.33
83$367.22$243.52$250.70$180.36
84$392.42$258.32$266.75$191.23
85$417.77$273.13$282.95$202.25

$20000 Mutual of Omaha Monthly Rate Chart

AgeMale, SmokerMale, Non-SmokerFemale, SmokerFemale, Non-Smoker
45$59.27
$47.69$53.08$42.01
46$61.20$49.15$54.36$42.84
47$63.56$50.84$55.86$43.89
48$66.13$52.72$57.35$45.16
49$67.94$53.85$58.46$45.76
50$70.58$55.11$59.65$46.14
51$74.56$57.41$62.58$47.70
52$77.80$59.04$64.49$48.56
53$81.97$61.20$67.41$50.04
54$86.33$64.01$70.11$51.73
55$91.33$66.98$73.44$53.60
56$95.69$69.70$75.93$55.34
57$99.86$72.61$78.23$56.91
58$104.02$75.33$80.51$58.46
59$109.01$78.43$83.00$60.20
60$114.83$82.31$86.13$62.53
61$122.73$87.56$90.71$65.82
62$130.85$92.60$95.28$68.92
63$138.75$97.83$99.86$72.23
64$146.87$103.08$104.22$75.53
65$154.77$108.31$108.79$78.82
66$165.79$115.49$115.88$83.68
67$177.02$122.66$122.94$88.52
68$188.06$129.85$130.01$93.38
69$199.08$137.02$137.10$98.42
70$210.31$144.20$144.16$103.28
71$224.87$153.51$154.36$110.06
72$239.64$162.64$164.33$117.04
73$254.40$172.82$174.53$124.65
74$268.96$183.11$184.51$132.36
75$283.73$195.85$194.70$141.62
76$302.24$210.54$208.01$153.29
77$322.29$224.08$222.39$163.81
78$342.74$236.51$236.88$173.67
79$363.14$249.25$251.51$183.62
80$383.73$262.11$266.27$193.66
81$417.00$282.79$287.47$209.22
82$452.62$303.88$310.34$224.71
83$488.56$323.62$333.20$239.41
84$522.16$343.36$354.59$253.90
85$555.97$363.10$376.20$268.60
[table “10” not found /]

*Burial insurance premiums are subject to underwriting, based on rates as of 8/20/2018, from state-regulated life insurance companies offering final expense burial whole life insurance protection. Understand that to potentially qualify; you must apply to see if you’re eligible. Rates are subject to change. Give Buy Life Insurance For Burial a call at 888-626-0439 now to see what program you may qualify for.

Final Thoughts

Modified Whole Life Insurance Is the Last Choice – NEVER Plan A, B, or even C! 

You should ONLY accept a modified life insurance policy after all other options have been exhausted.

This is a big problem if you end up working with a “one-trick pony” agent that only represents one company. You should avoid taking a modified whole life insurance plan out with a captive agent! 

You Deserve the Best You Can Qualify for

Don’t settle for a policy that makes you wait TWO YEARS! Why? Because you deserve a product that guarantees you and your family protection from day one! 

If you die during the first two years on a modified whole life insurance plan, your family will ONLY receive the premium refunded plus a little interest.

That’s not good enough, especially when funeral services these days cost upwards of $10,000!

Always try to qualify for more comprehensive coverage BEFORE resorting to a graded whole life insurance policy.

I’ve helped countless people (who originally had modified whole life insurance) secure first-day full natural death coverage. Don’t give up before trying!

Avoid Agents Working for One Company Only

I firmly believe it should be a crime to push a two-year waiting period policy onto a client when you know they could qualify for something better. 

Agents should strive to do the BEST they can for their clients. But so many don’t! Why? Because deep down, they don’t care. To them, it’s just a job. 

But, in my opinion, that’s not good enough! Our clients deserve the BEST! Because an insurance payout can genuinely help people at a time when they need it most.  

Too often, folks end up with a modified plan, and people die during the waiting period. Even the healthiest of people aren’t immune to life-threatening illnesses. 

Work With A Broker

At Buy Life Insurance For Burial, we can explain all of your options available. And we can help you replace inferior coverage with a superior quality policy! 

If you have no choice but to get modified whole life insurance, at the very least, work with an independent insurance agent (broker). 

Independent insurance agents, like myself, represent multiple life insurance companies to secure the best deal for you. 

If you’re ready to discover your options for life or burial insurance, you can call us at (888) 626-0439 now for your free life insurance quote!

If you don’t reach me feel free to leave a message. I’m usually busy talking to people, so I can’t always answer. But I will get back to you!

Or click here to request a free quote. We will get back to you within the next 24 business hours! 

Thank you for reading! 🙂 

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