YOU ASK:

What is the definition of Modified Premium Policies?

WE ANSWER:

Modified Premium Policies are insurance policies that allow the insured to pay lower premiums at the start of the policy and then a higher premium later in the life of the policy.

Modified Premium Policies are offered to those who want a high amount of coverage but could not afford it at the moment. The calculations are such that the premiums paid during the first years of the policy are lower than the amount the insured would normally pay. But he will have to make up for it during the latter part of the policy, when he will pay higher premiums than what he would normally pay.

This kind of policy is also called a Graded Premium Whole Life policy.

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