Modified Life Insurance
Definition - What does Modified Life Insurance mean?
Modified life insurance is a life insurance that has lower premium prices for the first three to five years. After that initial period, the premium becomes significantly higher.
Insuranceopedia explains Modified Life Insurance
Modified life insurance is appealing to people who can foresee having more funds available a few years down the line. Someone who just started their career, for example, might anticipate promotions or raises by the time the premium price climbs.
Modified life insurance is also attractive to those who want to focus on dealing with major expenses in the short run, like paying off their car, mortgage, or student loan. With the lower premiums in the initial stage, they can put more money toward these.