Why Buy Modified Whole Life Insurance?

Modified Whole Life policies offer lower premiums for the first three to five years, but still offer all of the basic benefits of whole life Insurance policies. This type of policy provides an indicative opportunity for young families looking to build assets at a time when they are struggling to make ends meet. A family can build cash value and at the same time be eligible for dividend payouts depending on the policy. Another nice feature is that cash value is tax deferred and money can be borrowed from the cash value tax-free. Modified Whole Life is a means to set up a financial base that can be used in times of financial hardship. It is not a matter of "if" you run into hard times; it is a matter of "when" you experience them. The cash value that you will be accumulating in this policy can be your financial crisis management for such times. It can also provide for your child's education, help supplement retirement income, or many other necessities that may arise. Any of these needs can be funded as a low-interest Loan and still maintain the integrity of the policy.

Here are several "nut shell" reasons that explain why Modified Whole Life Insurance is really a wise choice:

• Modified Whole Life has the same highlights as a whole life policy
• A guaranteed death benefit
• Tax-deferred cash value accumulation
• The ability to borrow from cash value, generally on a tax-free basis
• The potential to earn dividends as declared by the company

The one thing you always have to remember is that the younger you are the cheaper your premiums will be, therefore it only makes sense for you to buy while you are young. Premiums are established by the use of actuary tables, therefore the longer the odds are that you will live, the more premiums you will pay in; making them much lower. Also, when you are young, your health is probably excellent; this may not be the case if you should wait until you have the income to afford a whole life policy. There is so much competition among life Insurance Companies that they are flooding the mail boxes almost daily with many different types of offers. These offers look attractive with their low rates, guaranteed coverage, level benefits for the terms of the policy, and much more. However, be sure to ask a licensed agent to help you check these good deals; some may be legitimate. I would be skeptical of most of these policies as very few that arrive in your mail box are really what they are representing.

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