How Does Modified Whole Life Insurance Work?
Modified whole life insurance is a policy that accepts applicants with severe pre-existing conditions. In most cases, approval is guaranteed. These plans always have a waiting period of 2-3 years.
The insurance company will only refund your premium payments and roughly 10% interest for any non-accidental death during the waiting period. After the waiting period is over, the full death benefit is payable for any reason.
Modified plans also have higher premiums compared to traditional whole life policies. The cost is higher because these plans have little to no underwriting, which means the insurance provider is taking on a high level of risk. With more risk, insurance costs more.
Beyond the waiting period, modified whole life policies have fixed premiums, coverage that will never decrease or expire, and they accumulate cash value.
What Is Modified Premium Whole Life Insurance?
Modified premium whole life is a type of policy that offers initial lower premiums for approximately 2-10 years. After the introductory teaser rate expires, the price remains at its new, higher cost indefinitely.
Pros And Cons Of Modified Whole Life Insurance
- People with dire health issues still qualify.
- Health questions are often not required.
- No medical exam is required.
- Can frequently be bought online directly from an insurance company or agency.
- Permanent life insurance coverage that will last your entire life.
- Level premiums that will not increase.
- Death benefit won’t decrease.
- Builds cash value that you can borrow against, should you need to.
- 2-3 year waiting period before you’re insured for natural causes of death.
- It’s more expensive because the insurer is taking on a high level of risk.
- Coverage amount maximums are low (typically $25,000 and under).
- Nearly instant approvals due to little or no underwriting.
- Fast applications that usually take less than five minutes to complete.
How Much Does Modified Whole Life Coverage Cost?
The table below contains sample modified whole life insurance rates for various coverage amounts. However, remember that your exact age and the company you apply with may result in a different cost.
| Age & Gender | $10,000 | $20,000 | $25,000 |
|---|---|---|---|
| Female age 45 | $28 | $55 | $68 |
| Male age 45 | $36 | $72 | $90 |
| Female age 50 | $30 | $60 | $75 |
| Male age 50 | $40 | $79 | $99 |
| Female age 55 | $38 | $74 | $92 |
| Male age 55 | $45 | $90 | $112 |
| Female age 60 | $43 | $84 | $105 |
| Male age 60 | $57 | $113 | $141 |
| Female age 65 | $50 | $99 | $124 |
| Male age 65 | $69 | $136 | $170 |
| Female age 70 | $64 | $127 | $158 |
| Male age 70 | $87 | $172 | $215 |
| Female age 75 | $89 | $176 | $220 |
| Male age 75 | $113 | $226 | $282 |
| Female age 80 | $127 | $253 | $316 |
| Male age 80 | $157 | $313 | $391 |
| Female age 85 | $158 | $314 | $393 |
| Male age 85 | $193 | $384 | $480 |
| Source for monthly prices: Choice Mutual quote calculator. Rates are for Mutual of Omaha guaranteed acceptance coverage, rounded to the nearest dollar, and are valid as of 07/22/2025. | |||
When Should You Buy A Modified Benefit Whole Life Policy?
Most seniors looking for final expense life insurance can qualify for a plan with no waiting period and are therefore not best served by a modified whole life policy.
Getting coverage with no waiting period will translate into lower premiums and immediate peace of mind, knowing that your death won’t create a financial burden for your surviving loved ones.
However, there are some situations where a modified benefit whole life policy is your only option.
Below is a list of health conditions. If you have any of these issues, a modified policy is the only type of life insurance plan you can obtain.
- Dementia or Alzheimer’s
- Bedridden
- Wheelchair-bound due to a disease or illness
- Currently have or are being treated for cancer (some types of current cancer stage 0-1 are acceptable)
- AIDS or HIV
- Mental incapacity of any kind
- Currently in a nursing home, hospital, or nursing facility
- Receiving hospice care
- Drug or alcohol abuse during the last two years
How To Qualify For Life Insurance With No Waiting Period
Many senior burial insurance companies offer permanent coverage with an immediate payout.
The most important thing to understand about no waiting period coverage is that you must qualify for it.
You don’t have to undergo a medical exam to qualify for immediate coverage. However, you must answer health questions and subsequently be approved.
The key is to find a final expense life insurance company that is accepting of all your health issues. If you have any pre-existing conditions, your best chance of finding coverage with no waiting period is by working with an independent broker.
Independent brokers (aka “agencies”) partner with multiple insurance providers to pair each client with whichever company offers them the best policy.
Remember, all insurance companies compete with one another primarily through the cost of insurance and underwriting. For example, one insurance company may not accept people with diabetes, but another will.
Independent brokers will assess your medical history to determine which companies will offer you the best price and, hopefully, coverage with no waiting period. Working with an agency is free, and the insurance has no additional fees or costs.
Frequently Asked Questions
Whether modified or not, all whole life policies build cash value. Funds in the cash value account always grow tax-deferred.
You can cancel any form of insurance whenever you want. If you cancel a modified whole life insurance plan, the insurer will refund you the net surrender value. The surrender value will be very close to your total cash value when you surrender it. Alternatively, you can roll the funds into an annuity.
- Nationally licensed life insurance agent with over 15 years of experience
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- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
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David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
