What is modified whole life insurance?
The modified whole life policy offers permanent coverage high premiums and complicated policy options.
Is learning what is modified whole life insurance is and its value to you important? In fact, whole life insurance has several advantages over other types of life insurance. First, whole life insurance is the most common type of permanent life insurance. It is also one of the more affordable forms of permanent life insurance.
However, there are several disadvantages to buying whole life insurance. The main disadvantage of whole life insurance is that it has very high premiums. Another disadvantage is that whole life policies have an extremely complex set of options. For example, you can choose whether or not to allow your beneficiaries to borrow against the cash value of your policy.
A close focus
If you decide to go with a whole life policy, it is important to shop around and compare quotes. Make sure you are getting the best deal possible. You should also make sure your agent is not hiding any extra fees from you. As a general rule, whole life agents tend to be much more expensive than other types of agents. However, this is not always the case.
If you are working with a good agent, he or she should be able to give you an accurate comparison of whole life insurance policies and other types of policies. Another disadvantage of whole life insurance is that the cash value component can be extremely small. For example, in many cases, it could take 30 or 40 years for the cash value of a $100,000 whole life policy to reach the level of $100,000. That means, in many cases, your beneficiaries will receive less than $100,000 when you die.
To conclude, whole life insurance can be a good choice for some people. However, if you are looking for the best deal possible on permanent life insurance, you should look elsewhere. What is traditional term life insurance? You need to understand it quite well, and one attribute is how it grows slowly over time.
Most people who buy term life insurance pay about twice as much as they need to. For example, let’s say you are 30 years old and you want to buy $500,000 worth of term life insurance. According to the standard mathematical formula, you should be paying $1,000 per year for insurance. However, most people pay much more than $1,000 per year. Why? The answer is simple: You see, when you use the mathematical formula, you have to make several assumptions. One of those assumptions is how long you will live.
And the truth is, no one can predict with any degree of accuracy how long they will live. Therefore, using the mathematical formula as a guide is like asking a man to guess his own weight. It just doesn’t make sense. Instead, the best way to determine what you should be paying for term life insurance is to look at what other people are paying. What this means is you should be looking at what other people in your same situation (age and health) are paying. Taking the time to understand what is modified whole life insurance and the other types of covers is an important step towards securing your future.
Be on the know always
How do you find out what other people are paying? There are a couple of ways you can do this. The first way is to simply ask your insurance agent. Chances are, your agent will be more than willing to tell you what his customers are paying. However, keep in mind your agent may be more than a little biased. He or she may not want to hurt your feelings, so they may try to give you an answer which is somewhat less than the absolute lowest price they could charge you.
On the other hand, if you ask an unbiased 3rd party, they will not have any such concerns. So, how much does traditional term life insurance cost? how much does traditional term life insurance cost? To find out, you need to contact an independent 3rd party. One of the best 3rd parties is The Charles Buyer.
They are a private company and they don’t participate in any sort of marketing scheme. Therefore, they will give you an absolutely unbiased assessment of what people in your situation are paying for term life insurance.
Compared to using your agent or using mathematical formulas, I think it’s safe to say The Charles Buyer gives the most accurate picture of what people are actually paying. What else should you know about The Charles Buyer? Not only do they give an accurate picture of what people are paying for term life insurance, but they also give other useful information.
For example, they tell you the exact age at which his customers were most likely to apply for and purchase a policy, how long the average policy has been in force, and what the age distribution is for policies that have recently expired.
How do you contact The Charles Buyer? It’s easy. Just call their office at 1-800-000-0000 and ask for Jim Buyer. Tell him you would like to have access to some of their data, and he will send you a report called “The Charles Buyer’s Report on Term Life Insurance.”
All you have to pay is the shipping and handling charge (usually $2.00 per order). If you decide to use this service, I think it’s only fair I get something out of it. So, to even things up, I’m going to give you a little “bribe” which in this case is a reprint of a letter from one of their customers. Here’s the text of the letter: Dear Friend, I thought you would want to see this before anyone else. I am sending you a copy of a report that was written by an independent insurance agent who is very experienced in this area.
Thus, you can be confident this report contains extremely accurate and unbiased information. This report was written because people were asking questions about the cost of permanent life insurance. How much should you pay for permanent life insurance? Is there any way to buy cheaper? These are common questions and this report gives you the answers. With this in mind, here is what The Charles Buyer says on the subject: How Much Should You Pay For Permanent Life Insurance? The answer depends on how long you want the policy to last. If you have 20 years or less until you need the money, you should probably pay only about 3% of your salary per year. That means if you are earning $40,000 per year, you should have $1,200 put away for permanent life insurance every year. Of course, you should also factor in the amount you would have to pay in premiums each year.
Thus, if you are putting $1,200 away and you are paying $800 per year in premiums, your “permanent” life insurance would last 15 years. What if you have more than 20 years until you need the money? In that case, you should probably pay about 7% of your salary per year. Thus, if you are earning $40,000 per year, you should have $2,400 put away for permanent life insurance. Of course, you should also factor in the amount you would have to pay in premiums each year.
Too bad it can’t be “permanent” for longer than 15 or 20 years, huh? If it could, then you certainly would not have to pay any money for it after the first 15 or 20 years, right? Actually, that’s not true. There is a way to buy cheaper permanent life insurance. All you have to do is convert your term life insurance to permanent life insurance. This will almost always give you a substantial reduction in the cost of your permanent life insurance. How To Do This Is Up To You!
You can take the simple route and let your current life insurance company do it for you. Or, you can go through an independent agent like me who will check into it for you and give you a full explanation of what this means to you and your family. If you choose the second option, just remember there is a small chance (about 1 out of 300. Something will go wrong and your policy will be canceled. Don’t be in any rush to act whether you are dealing with modified whole life insurance or any other type. Talk to experts to understand what is modified whole life insurance and the other important covers. Remember it is for your own good.
It is always important to take your time. In any case, the bottom line is: You can usually buy much cheaper permanent life insurance by converting your existing term life insurance to permanent life insurance. Cash Value of Term Life Insurance grows at a very slow rate. However, it does grow. And, it grows pretty fast when you compare it to other investments. For example, the stock market has increased in value by about 500% in the last 23 years. Yet, your term life insurance policy may have only gained 40 or 50 cents in cash value per year.
On the whole, though, your policy will more than make up for this “loss” in just a few short years. Also, the insurance company may decide to accelerate the growth of your cash value as soon as 15 or 20 years have elapsed since you took out your policy.
Do what favors you
How To Take Advantage Of This Is Up To You! There are two ways you can do this: One is to simply let the insurance company do it automatically and treat the increase in cash value as an “extra” benefit. The other is to take affirmative action to increase the cash value of your policy by making a small payment each year. Whatever you choose to do, simply remember: The more you put into your permanent life insurance policy, the more you will get back.
Experts believe that it doesn’t matter whether one is focusing on modified whole life insurance or any other cover, it is always important to be decisive at every stage. Is there any way to buy cheaper? Yes, there is. But, if you do your own research, you will find that option is not nearly as attractive as converting your term life insurance to permanent life insurance. By the way, another advantage of this type of life insurance is, it has a much lower incidence of “surprises.”
Thus, if you have children or anyone else who depend on you for support, you will find it much less likely your death will leave them with a big financial burden. In my experience, only about 1 out of every 200.000 people convert their term life insurance to permanent life insurance. But, those people reap huge benefits and save a tremendous amount of money. Why? The answer is simple. It’s because they don’t pay any attention to what I write about this subject. They simply assume whatever advice I give them is good advice and they follow it without question. Not so!
- In brief, here is what I suggest all people with term life insurance do:
- Re-read my free report called “How to Make Your Term Life Insurance More Than a Waste of Money!” (
- If you already have read that report, then re-read it again!
Then, if you still want to buy cheaper term life insurance, go ahead and do it. But, if you are at all interested in permanent life insurance, then ask me to check it out for you. And, if you decide to go ahead with permanent life insurance, then let me recommend an independent agent who will shop around for the lowest price available for a permanent life insurance policy for you.
This independent agent can also help you determine whether or not you should convert your term life insurance policy to a permanent one. Questions to do with what is modified whole life insurance and even the unmentioned in the same segment sharpen your mind, helping you plan brace for tough times ahead. The decision is up to you but, I will tell you this: If you decide to convert your term life insurance to a permanent one, it will almost always give you a substantial reduction in cost. Now, what about that little essay I wrote on “How to Save a Fortune on Term Life Insurance?”
I think it would be a shame if you didn’t read it just because you already read my free report. So, if you have already read my free report and you still don’t want to read the essay, then that’s fine with me. But, if you haven’t read either one yet, then please click on recommended links.