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There is nothing so unfortunate as to depend on your kids and grandchildren financially, especially in old age.

Imagine being 80 years old, feeble and without any savings, because you did not plan for your retirement when you were young and earning!

Because of that, you rely on the people around you for all your expenses, including food, care, medication, and etc. With these tough economic times, it is quite unpredictable.

These people may one day get tired of supporting you and decide that they can no longer pay for your expenses because they have their own families to take care of with their already stretched resources?

What would you do if that day came?

Would you go to court so that they can be compelled to continue paying your bills? Or would you curse them and move on?

You do not have to live a dependent life in old age, especially if you start building your financial security right now. There are many ways to do this, including getting the right insurance policy such as whole life. There are two types of whole life insurance i.e.:

  • Traditional Whole Life Insurance.
  • Modified Whole Life Insurance.

While both serve the same purpose, which is to cover your entire lifetime, as long as required premiums are paid, or to the maturity date, there is a significant difference between the two policies.

With the former, premiums are paid at a flat rate. In other words, you pay the same amounts of premium from the beginning to the maturity of the policy.

With the latter, however, premiums are adjusted over time. For example, for the first 5-10 years, you will pay lower premiums than the period after that.

There is a different type of whole life plan as well. I haven’t mentioned it above because it’s a bit different and only seniors need this. It is graded benefit whole life insurance, know more here.

The Pros & Cons of Modified Whole Life Insurance for Seniors

modified whole life insurance for seniorsOf the two plans, modified whole life is the most popular among clients as it offers more benefits. That is not to say it lacks a few drawbacks here and there.

After all, everything has its own advantages and disadvantages.

Nonetheless, understanding modified whole life plan will enable you to make up your mind easily as to whether to go with this or to find another policy.

After all, don’t you want something that offers more of the advantages you are looking for and less of the disadvantages you are trying to avoid?

Pros are Here

Minimized Payments in First 5-10 Years

The reason why many people shy away from whole life insurance plans is to pay premiums for many years without default. When you skip paying premiums even just a few times, the contract terminates and you may lose all your savings.

The worst part is that with the traditional whole life insurance, you are obliged to pay premiums for decades at a flat rate. This is where modified whole life coverage stands out.

With this policy, premiums are conveniently flexible. In the first 5-10 years, you will pay lower premiums before the rates are adjusted upwards. This lets you have some cash to pay other bills.

Provides Comprehensive Protection for Whole Life

The beauty of this life insurance policy is the fact that it provides comprehensive protection over your lifetime. As soon as the contract is started, you are covered comprehensively for the rest of your life even if you have only paid premiums three or so times with decades of premiums to pay further.

The number of times you have made payments does not matter, what matters is how you abide by your premium payments. As long as there is not a single default yet, you are safe.

Helps Build Cash Value

Another incredible benefit of this insurance policy is that it helps you build cash value just like other life insurance policies.

Should you decide to cancel the contract today, for one reason or another, the premiums you have paid over the years do not just go up in smoke. You will get a certain percentage of those premiums.

In addition, you can cash out some of your premiums without necessarily having to terminate the contract.

Cash Value Is Tax Deferred

The best part about the cash value that you will get should you decide to terminate your contract anytime is tax deferral.

You enjoy a temporary tax break on the cash value until after investing the money somewhere else and profits start coming in.

Before then, your money will not be taxed.


The modified life coverage is more flexible than traditional life coverage.

First, flexibility can be seen in the manner in which premiums are paid. You start with lower premiums, which will increase after a given duration of time.

What’s more, you can easily personalize your coverage in a manner that particularly suits you.

Cons are Here

Premium Rises after a Set Period

The fact that you start with paying lower premiums and continue with paying higher premiums after 5-10 years makes no sense to the client.

It would be better if it were vice versa so that you part with more in the first few years of the contract and part with less from the beginning of the sixth or eleventh year going forward.

Takes Time to Build Cash Value

You need to pay premiums consistently for many decades before being eligible for a cash value.

Getting this benefit requires much patience and financial commitment, which many people may not have.

More Complex than Traditional Insurance

Although modified whole life insurance sounds great with so many benefits, the reality is that it is more complex than what it seems.

In fact, it is more complicated than traditional insurance policies.

Final Thoughts

A modified life coverage offers flexible payment terms and cash value. Due to this, it can be a great choice for seniors who are looking to build a solid financial security without a difficult commitment financially.

In addition, the cash value is tax-deferred and policyholders can borrow money from the cash value without any tax charges.

So, does this sound like the best insurance policy for you?

Please leave your comments below and let us know your thoughts.