Modified Whole Life Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Modified Whole Life Insurance Premiums

Modified whole life insurance is a type of permanent life insurance. The key feature of this policy is that it offers lower premiums in the initial years, usually for a specific period like 5 to 10 years. After this initial period, the premiums increase.

Modified Whole Life Insurance

Examples of Premium Structures

  1. Initial Low Premium Period: For the first 5 years, the premium might be $50 per month.
  2. Increased Premium Period: After 5 years, the premium could rise to $100 per month.

Factors Affecting Premium Amounts

Several factors influence the premium amount for modified whole life insurance:

  1. Age: Older individuals typically pay higher premiums.
  2. Health: Poor health can lead to higher premiums.
  3. Policy Amount: Higher coverage amounts lead to higher premiums.
  4. Length of Low Premium Period: The duration of the initial lower premium period can affect the subsequent premium increase.

Example Table: Premium Comparison

Age at PurchaseInitial Premium (for 5 Years)Premium After 5 Years
30$45/month$95/month
40$55/month$105/month
50$65/month$115/month
Modified Premium Whole Life

Conclusion

Modified whole life insurance can be an affordable option initially, but it’s important to plan for the increased premiums in the future. Understanding the structure of these premiums and how they might change can help in making an informed decision. For more personalized information about modified whole life insurance premiums, contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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