If you have health issues and find it challenging to qualify for a life insurance policy, then modified life insurance has covered you. Modified life insurance, also referred to as guaranteed life insurance, is a feasible option for you. Anyone can qualify for a modified life insurance policy because it doesn’t require a medical exam.
What Exactly Is Modified Life Insurance?
This is a type of coverage in which the premium rates have an alternative structure. This policy is whole life insurance, but it may also include a term life insurance policy. With a modified life insurance policy, you will notice an increase in your rates between the third and fifth years. After this increase, the premium amount will remain the same for the remainder of your policy.
Who Needs Modified Life Insurance?
Modified life insurance is a coverage that will accept applicants who have pre-existing conditions, such as
- Liver failure
- AIDS or HIV
- Diabetic nephropathy
- Congestive heart failure
- Dementia or Alzheimer’s
- Organ or bone marrow transplants
How Does This Policy Work?
Getting modified whole life insurance is easy but has a waiting period of 2-3 years. The insurers will only refund your premium if there’s no accidental death of the insurance policyholder during the waiting period. The death benefit is payable in full after the waiting period is over.
Modified insurance policies also have higher premium rates because they have little underwriting. The insurance company accepts the risk, which drives up the premium payments.