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A major disadvantage of a modified whole life insurance policy is that you can never change the face value on your policy. Additional coverage would require the purchase of an another policy. Also the growth potential on your policy is limited.

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โˆ™ 2010-03-02 01:28:55
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Q: What are the disadvantages of a Modified whole life insurance policy?
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What is modified whole life insurance and how is it different from regular life insurance?

Modified whole life is a whole life policy that charges smaller premiums for a specified period of time after which the premiums increase for the remainder of the policy. Whole life often can change unrpedicatably due to inflation.


What is another word for whole life insurance?

You can call a whole life insurance policy as a "Non-Endowment Life Insurance Policy".


Is permanent life insurance the same as whole life insurance?

Technically, there is no insurance policy called as permanent life insurance. However, you can treat whole life insurance policy as permanent since the policy covered the whole life span of the policy holder and benefit is payable to nominee in the event of any eventuality of the policy holder.


What disadvantages are there to whole life insurance policies?

That basically the policy's are not disclosed to the owner of the policy. Also, that they are not as flexible as other insurance policies. If you run into a financial failure you have to find a way to use your own ways to come up with money.


If someone took out a modified benefit whole life insurance policy in June 1998 and died in August 2008 and the policy was 5000 what is the death benefit paid?

5000 contestability period is two years


What is the description of whole life insurance?

In Whole life policy, insurance claims are entertained in case of any eventuality of the policy holder during the tenure of the policy period only, like term assurance policy.


What is description of whole life insurance?

In Whole life policy, insurance claims are entertained in case of any eventuality of the policy holder during the tenure of the policy period only, like term assurance policy.


What is ordinary life insurance?

Actually, whole life insurance policy other than endowment,single premia or ulip policy can be called ordinary life insurance policy.


What is the difference between term and whole life insurance if there is any?

The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.


What is the best life insurance policy in India?

Government Owned Life Insurance Corporation of India's New Jeevan Anand Policy is at present the best insurance policy in India, which is a mixture of endowment and whole life policy, which is indeed novel and unique in the whole world.


Who are some Canadian whole life insurance policy providers?

Some Canadian whole life insurance policy providers are State Farm Canada, LSM Insurance, MJW Insurance, Essential Benefits, and The Canada Life Assurance Company.


What is the difference between whole and life term insurance?

The difference between whole and life term insurance is that a term policy is life insurance only whereas the whole insurance combines a term policy and a investment component so one can build cash value and borrow against it.


Is a 15 year term life insurance policy better than a whole life policy?

both has certain advantages and disadvantages. one can go for either one depending on their economical and health condition. but to me life policy has a upper hand.


What is a single pay whole life insurance policy?

A single pay whole life insurance policy is a permanent life insurance policy that requires a one time payment/premium. The policy is guaranteed to stay in force until age 121 (in USA) and no additional premiums need to be paid.


What is convertible term insurance?

A term policy that can be converted to a whole life (or other) policy.


What are the disadvantages of whole life policy?

The only disadvantage is the higher cost compared to a term policy.


What is a whole life insurance product?

A whole life insurance product is life insurance policy that lasts for the entire lifespan of the individual under the policy. New York Life and Mass Mutual are two popular companies that offer whole life insurance products. Check out their websites for more information.


How long does it take to cancel your life insurance policy?

I have a whole life insurance policy, how long does it take to cancel it, also can I get money back from it.


What to do when life insurance policy mature?

If you have reached the age where your whole life policy matures, call your life insurance agent or the insurance company. They owe you a check. If you are talking about the end of a term policy, you are owed nothing.


What is the difference between term life versus whole life insurance?

Term life insurance is only life coverage. When the person who is insured dies, the beneficiary receives the amount of the policy. Whole life insurance is a term life policy combined with an investment. This policy builds value.


What is a life insurance policy?

A universal life insurance policy is a cash value type of life insurance policy. With universal life insurance, you policy may build up cash values over time, similar to a whole life policy, but typically less expensive than whole life insurance. Another feature of some universal life insurance policies is called a "no lapse guarantee" With this feature, as long as you pay your premiums, the policy is guaranteed to last to age 100 and beyond depending on the specific carrier you choose. Compare this to a whole life insurance policy where the premium requirements may vary and depend on how dividends and interest rates perform.


What is paid up contract in Insurance?

A paid-up policy is a whole life insurance policy for which no additional premium / payments are required to keep it in force.


Whole life insurance Vs term life insurance?

Whole life insurance is the most expensive type of life insurance. The advantages of a whole life insurance policy include guaranteed death benefits, guaranteed cash values, fixed annual premiums. The primary disadvantages of whole life are premium inflexibility,the internal rate of return in the policy may not be competitive with other savings alternatives, and the cash values are generally kept by the insurance company at the time of death. Term life insurance provides life insurance coverage for a specified term of years in exchange for a specified premium. The policy does not accumulate cash value. A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary receives a payout. If he does not die before the term is up, he receives nothing.


What is Modified whole life insurance?

This type of insurance is kind of like an ARM mortgage. You pay low premiums for a set time, but then they increase after that.


What is a universal life insurance policy?

A universal life insurance policy is a cash value type of life insurance policy. With universal life insurance, you policy may build up cash values over time, similar to a whole life policy, but typically less expensive than whole life insurance. Another feature of some universal life insurance policies is called a "no lapse guarantee" With this feature, as long as you pay your premiums, the policy is guaranteed to last to age 100 and beyond depending on the specific carrier you choose. Compare this to a whole life insurance policy where the premium requirements may vary and depend on how dividends and interest rates perform.