Whole life insurance refers to coverage that is valid until the person holding the policy passes away. This differs from term life insurance, which only covers individuals for a select period of time. Modified whole life insurance is a specialized version of whole life insurance. The modifications usually relate to the method and amount of payment. Some modified whole life insurance plans offer lower rates for the first five years, followed by a rate hike to cover the rest of the plan. Other types of modified plans may include limited pay periods during which the person buying the insurance pays for the policy in full during a set period of time. These plans can even be designed to be paid off in a single payment.
Many people choose whole life because it is a better life long investment, and by selecting a modified plan, it is possible to budget better over the course of a lifetime. Many younger individuals who purchase whole life insurance will choose a modified plan that starts off with lower payments in order to better accommodate their monetary situation. Those who like the idea of a long term plan but do not want life long payments may prefer limited or one time payment plans. In this way, it is possible to control the length of the payments, which can be especially helpful for those who are living on a budget. When searching for modified whole life insurance, it is important to look at all options. To do this, smart shoppers can turn to online sites such as LifeInsuranceRates.com. Sites like ours are designed to help you get quotes from various insurance companies, allowing you to compare similar policies from an unbiased source. This side by side comparison makes it easy to see the perks of each plan and the long term and short term costs for the coverage. In this way, individuals can find coverage that fits both their needs and their budget, all without ever having to leave home.