What's the differences between modified premium and graded policies?

[Spin]

Both have lower initial premiums, when is one used instead of another?

 

[DHK]

You may want to post this question in the Final Expense sub-forum.

 

[rousemark]

Both have lower initial premiums, when is one used instead of another?

Generally speaking, modified is return of premium plus interest during the first few years. Graded is a percentage of the face amount during the first few years. Neither will have a lower premium initially than a standard plan.

 

[goillini52]

Both have lower initial premiums, when is one used instead of another?

Which you can get is determined by your health. You don't choose either one, you take what you can qualify for.

 

[Newby]

Generally speaking, modified is return of premium plus interest during the first few years. Graded is a percentage of the face amount during the first few years. Neither will have a lower premium initially than a standard plan.

But some insurance companies call their modified plans, graded. So it’s a bit confusing.

 

[goillini52]

But some insurance companies call their modified plans, graded. So it’s a bit confusing.

I hate when they do that. It's also misleading.

 

[shonceman]

Outside of the Final Expense world, “Modified Life” means something entirely different:
[EXTERNAL LINK] - What is Modified Life Insurance? - Definition from Insuranceopedia

I’ve only encountered an actual policy of this type a handful of times. I don’t think it’s sold much anymore because it’s easy replacement bait.

 

[goillini52]

Outside of the Final Expense world, “Modified Life” means something entirely different:
[EXTERNAL LINK] - What is Modified Life Insurance? - Definition from Insuranceopedia

I’ve only encountered an actual policy of this type a handful of times. I don’t think it’s sold much anymore because it’s easy replacement bait.

Globe Life used to have a Modified Whole Life for kids.

 

[rousemark]

Outside of the Final Expense world, “Modified Life” means something entirely different:
[EXTERNAL LINK] - What is Modified Life Insurance? - Definition from Insuranceopedia

I’ve only encountered an actual policy of this type a handful of times. I don’t think it’s sold much anymore because it’s easy replacement bait.

Yeah, I remember those old products after I posted. Haven't seen one in years. The closest I have seen lately is the AmAM?? product that rates a smoker as a non smoker and then the premium goes up in 3 years or so if the person does not quit smoking.

 

[goillini52]

Yeah, I remember those old products after I posted. Haven't seen one in years. The closest I have seen lately is the AmAM?? product that rates a smoker as a non smoker and then the premium goes up in 3 years or so if the person does not quit smoking.

I think that's Americo.