what is modified whole life insurance 
modified whole life insurance is permanent life insurance in which premiums increase after a specific period policyowners pay lower premiums than they would for a level premium policy during the first few years and higher premiums in the later years traditional whole life insurance premiums in contrast remain the same throughout the life of the policy the bottom linewhole life insurance generally has a level premium and death benefit and provides a guaranteed benefit upon the death of the insured regardless of when they die part of the premiums you pay for a whole life policy go to a savings component known as the cash value those funds are invested with a guaranteed return and after they ve grown big enough you can borrow from or withdraw from the cash value tax free this and the fact that whole life covers you until death as long as you pay your premiums offer clear advantages over term life insurance which only pays out if the death occurs within a specific time frame however whole life insurance also has significantly higher costs 