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Modified Life insurance Offer or Approved other than applied
You just received a modified life insurance offer. Your whole life final policy premium is higher than what you applied for. Why it happens and what to do next when it does.

- updated last on April 15, 2023
Modified Life Insurance or Approved other than Applied
Modified Life Insurance: You just received a modified whole life insurance policy offer. Your final policy premium is higher than what you applied for. Now What
What is modified life insurance
It is not a surprise if you receive a modified life insurance offer that is higher than your initial quotation. What should you do in case you receive such an offer?
There is a higher chance of getting a higher final premium when you apply for life insurance and go through the underwriting process. When the premium comes back higher than what you expected from the initial quote, then it means that there are lapses in your medical result and your application details. It is the modified offer or also known as approved other than applied.
It is possible to receive a modified life insurance offer from the insurer if the information you provided differs from what the underwriter discovers after carefully reviewing your details and medical examination result.
It isn’t delightful to receive a higher premium than what you expected from the initial quote, but you can always look for better options while you stay covered. You may accept the offer as is or accept the offer for a reduced coverage while you still shop for better quotes online with the help of an independent broker. Also, you may do 360 degrees lifestyle changes to achieve better health conditions..
Important Takeaways:
- A higher premium than what have quoted means that you are approved other than applying for a modified life insurance policy
- Increased premium is a reflection of the information discovered right after the underwriting process
- The information that you failed to disclose during the initial application is a huge factor
- You have the liberty to accept, reduce the coverage, or totally decline the offer and shop around for other better offers
- It is also a wise decision to accept the offer or decrease the amount of coverage to become financially secure, even if you are still reapplying

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What is a modified death benefit
A modified death benefit is a feature of some modified life insurance policies. It means that if the insured person dies within a certain period after the policy is purchased (usually 2-3 years), the death benefit paid to the beneficiary will be reduced. This reduction is often a percentage of the total death benefit. It is designed to mitigate the risk for the insurance company of insuring someone with health issues or other factors that make them a higher risk. After the initial period, the full death benefit is typically paid out if the insured person passes away.
Modified life insurance policies can be a good option for those who may not qualify for traditional life insurance due to health issues or other factors. While the reduced death benefit may not be ideal, it can still provide some financial support for loved ones in the event of the insured person’s passing. It’s essential to carefully consider the terms and conditions of any life insurance policy before purchasing and to work with a trusted insurance agent or financial advisor to determine the best options for your needs and circumstances.
Adjustable life policy
An adjustable life policy is a type of life insurance that allows the policyholder to adjust the premium and death benefit amounts throughout the policy’s life. This can benefit those who may experience changes in their financial situation or life circumstances. However, it’s important to note that making adjustments to the policy can also impact the overall cost and coverage. It’s essential to carefully consider your needs and consult a financial advisor before choosing an adjustable life policy.
One of the benefits of an adjustable life policy is the flexibility it offers. Suppose you experience a change in your financial situation, such as a decrease in income or an increase in expenses. In that case, you can adjust the premium amount to better fit your budget. Additionally, you have a significant life event, such as getting married or having a child. In that case, you may want to increase your death benefit to protect your loved ones financially. However, it’s essential to remember that adjusting the policy can also impact the overall cost and coverage. It’s essential to carefully consider your needs and consult a financial advisor before choosing an adjustable life policy.
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Straight life insurance
Straight life insurance, also known as whole life insurance, is a type of policy that provides coverage for the policyholder’s entire life. Premiums are typically higher than other types of life insurance, but the policy also includes a savings component that can accumulate cash value over time. This can benefit those who want a guaranteed death benefit and a way to save for the future. However, it’s essential to consider the cost and coverage of straight life insurance before choosing this type of policy.
One of the main benefits of straight life insurance is that it provides a guaranteed death benefit, meaning that the policy will pay out a set amount to the beneficiary upon the policyholder’s death. Additionally, the policy’s savings component can accumulate cash value over time, which can be borrowed against or used to pay premiums. However, the premiums for straight life insurance are typically higher than other types of life insurance, and the savings component may provide less of a return than other investment options. It’s essential to carefully consider the cost and coverage of straight life insurance before choosing this type of policy and consult with a financial advisor to determine the best option for your needs.
Modified premium life insurance
Modified premium life insurance is a policy that allows policyholders to pay lower premiums for a fixed period, typically the first few years of the policy. After this initial period, premiums increase to a higher level. This policy can benefit those who may not qualify for traditional life insurance due to health issues or other factors. However, it’s essential to carefully consider the cost and coverage of modified premium life insurance before choosing this type of policy.
Modified premium life insurance can be a good option for those who need coverage but may need help to afford the higher premiums of traditional life insurance. The lower initial premiums can make it easier to budget, and the coverage can provide peace of mind for the policyholder and their loved ones. However, it’s essential to carefully review the policy terms, including the initial period’s length and the premium increase amount. It’s also important to consider the coverage amount and whether it will suit the policyholder’s needs. Consulting with a financial advisor or insurance agent can help ensure the policy correctly fits the individual’s situation.
Limited pay life policy
Limited pay life insurance is a type of whole life insurance that allows you to prepay for the entire cost of your coverage for a set number of years. … You may pay for your premiums monthly, quarterly, semi-annually, or annually if you select to do so in a restricted time period—typically 10, 15, or 20 years.
What is modified premium whole life insurance?
Modified premium whole life insurance is a type of life insurance policy that offers lower premiums for a fixed period, typically the first few years of the policy. After this initial period, premiums increase to a higher level. This policy can benefit those who may not qualify for traditional life insurance due to health issues or other factors. It provides coverage for the policyholder’s entire lifetime and includes a cash value component that grows over time. However, it’s essential to carefully consider the cost and coverage of modified premium whole life insurance before choosing this type of policy.
Modified premium whole life insurance is designed to provide affordable coverage for those who may not qualify for traditional life insurance. The lower premiums during the initial period can make it easier for individuals to obtain coverage, but it’s essential to understand that premiums will increase afterwards. The policy’s cash value component can provide a source of savings that can be used for various purposes, such as paying for college or supplementing retirement income. However, it’s essential to carefully consider the cost and coverage of modified premium whole life insurance before choosing this type of policy. It’s also essential to work with a reputable insurance provider who can help you understand the terms and conditions of the policy and ensure that it meets your needs.
Frequently Asked Questions
What is a modified life insurance policy?
A modified life insurance policy allows the policyholder to pay lower premiums for a certain period, typically the first few years of the policy. After this initial period, the premiums will increase to a higher level for the remainder of the policy. This type of policy is often used by people who need life insurance coverage but cannot afford the higher premiums of a traditional policy.
What is the difference between modified life insurance and whole life insurance?
Modified life insurance is a type of whole life insurance with lower premiums in the policy's early years but then increases over time. On the other hand, whole life insurance has level premiums throughout the policy's life. Additionally, modified life insurance may have a lower death benefit than whole life insurance.
Can you cash out a modified whole life insurance policy?
Yes, you can cash out a modified whole life policy. However, the amount you receive will depend on the policy's cash value and any applicable surrender charges or fees. It's important to review your policy and speak with your insurance provider before making any decisions about cashing out your policy.
About Coach B.
After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.
In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.
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