Best Modified Life Insurance in 2025 (Find the Top 10 Companies Here!)
Erie, AAA, and Allstate offer the best modified life insurance, starting at $50 monthly. Delve into their specific distinctions from standard insurance and advantages as they address needs with thorough coverage and competitive pricing, appealing to those prioritizing affordability and security.
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Table of Contents
Table of Contents
Insurance Content Managing Editor
Daniel S. Young began his professional career as chief editor of The Chanticleer, a Jacksonville State University newspaper. He also contributed to The Anniston Star, a local newspaper in Alabama. Daniel holds a BA in Communication and is pursuing an MA in Journalism & Media Studies at the University of Alabama. With a strong desire to help others protect their investments, Daniel has writt...
Daniel S. Young
Licensed Insurance Agent
Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the ...
Heidi Mertlich
Updated November 2024
1,883 reviewsCompany Facts
Full Coverage Modified Life Insurance
A.M. Best Rating
Complaint Level
Pros & Cons
1,883 reviewsCompany Facts
Full Coverage Modified Life Insurance
A.M. Best Rating
Complaint Level
11,638 reviewsCompany Facts
Full Coverage Modified Life Insurance
A.M. Best Rating
Complaint Level
Pros & Cons
11,638 reviewsErie emerges as the leading choice for best modified life insurance, providing competitive rates beginning at $50 per month for comprehensive coverage.
Our Top 10 Company Picks: Best Modified Life Insurance
| Company | Rank | Life Insurance Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 25% | A+ | Flexible Coverage | Erie |
 | #2 | 14% | A | Online Convenience | AAA |
 | #3 | 20% | A+ | Comprehensive Options | Allstate |
 | #4 | 22% | A++ | Personalized Service | State Farm |
 | #5 | 18% | A+ | Nationwide Coverage | Nationwide |
 | #6 | 16% | A | Customer Support | American Family |
 | #7 | 19% | A | Customizable Policies | Farmers |
 | #8 | 23% | A | Policy Bundling | Liberty Mutual |
 | #9 | 17% | A++ | Extensive Discounts | Travelers |
 | #10 | 13% | A+ | Local Presence | Progressive |
- Erie offers liability coverage at $50/month
- Explore top-rated modified life insurance providers
- Utilize expert reviews to select the best fit for your healthcare needs
#1 – Erie: Top Overall Pick
Pros:
- Excellent Claims Service: Based on our Erie insurance review, they excel in claims handling, vital for reliable life insurance.
- Customer-Centric: Erie prioritizes customer satisfaction, evident in positive feedback and support for clients.
- Cost-Effective: Erie offers competitive rates, promising potential savings for modified life insurance seekers.
Cons:
- Limited Availability: Erie operates in specific states, limiting access for those seeking modified life insurance elsewhere.
- Lack of Ambetter Certification: Absence from the certification program raises concerns about recognition in the insurance industry.
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#2 – AAA: Best for Online Convenience
Pros:
- Affordable Rates: AAA insurance offers up to $60 in potential annual savings compared to whole life insurance.
- Tailored Coverage: Policies can be customized to suit individual needs.
- Convenient App Features: The AAA app provides trip monitoring, car health diagnostics, and street sweeping alerts.
Cons:
- Restrictions: According to our AAA insurance review, restrictions may be inconvenient to some users.
- Limited Availability: Services are currently limited to select states.
#3 – Allstate: Best for Comprehensive Options
Pros:
- Wide Coverage: Trusted since then, Allstate offers comprehensive modified life insurance.
- High Trust: With a 9 out of 10 recommendation rate based on our Allstate insurance review, they prioritize customer satisfaction.
- Financial Guidance: They provide investment products and planning services for long-term security.
Cons:
- Limited Information: Detailed info on modified life insurance may require direct inquiry.
- Service Complexity: Their diverse services might overwhelm those seeking solely modified life insurance.
#4 – State Farm: Best for Personalized Service
Pros:
- Financial Stability: State Farm insurance group’s A+ rating from A.M. best ensures strong reliability.
- Diversity and Inclusion: State Farm’s commitment to diversity makes them suitable for inclusive coverage.
- High Retention: With over 90% customer retention, State Farm is a popular choice.
Cons:
- Limited Insurance Focus: State Farm may offer fewer options for modified life insurance.
- Agent Availability: Based on our State Farm insurance review, accessibility to agents may be limited in certain regions.
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#5 – Nationwide: Best for Nationwide Coverage
Pros:
- Extensive Coverage Options: Nationwide insurance provides diverse coverage options, including modified life insurance, ensuring customers can find the optimal policy.
- Simple Application Process: Through user-friendly online tools and agent assistance, they simplifies the application process for customers.
- Membership Benefits: Nationwide offers additional perks, potentially enhancing the value of their modified life insurance policies.
Cons:
- Limited Availability: Our Nationwide insurance review stated that their life insurance may not operate in all states.
- Nicotine Usage Impact: Premiums may be higher for nicotine users, potentially affecting individuals seeking the best modified life insurance.
#6 – American Family: Best for Customer Support
Pros:
- Financially Secure: American Family ensures long-term obligations like policy payouts.
- Customizable Policies: According to our American Family insurance review, they offer flexible coverage tailored to individual needs.
- Excellent Service: American Family consistently delivers top-tier customer support.
Cons:
- Higher Premiums: American Family’s temporary health insurance may have relatively higher costs.
- Limited Availability: Access to American Family’s policies may be restricted for some demographics.
#7 – Farmers: Best for Customizable Policies
Pros:
- Versatile Coverage: Farmers offers diverse modified life insurance options for tailored protection.
- Personalized Service: Wide agent network provides personalized guidance.
- Financial Stability: Based on our Farmers insurance review, solid reputation ensures reliability for policyholders.
Cons:
- Limited Online Tools: Online services may lack advanced features.
- Cost Consideration: Premiums, especially for modified life insurance, may be relatively higher.
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#8 – Liberty Mutual: Policy Bundling
Pros:
- Premier Whole Life Coverage: Liberty Mutual offers best modified life insurance plans, ensuring protection for long-term financial stability.
- Excellent Service: Renowned for outstanding customer support, Liberty Mutual insurance’s agents provide personalized assistance, enhancing satisfaction.
- Community Commitment: Liberty Mutual insurance contributes to community well-being, earning favor among socially conscious customers.
Cons:
- Limited Availability: According to our Liberty Mutual insurance review, their services may be geographically limited, posing challenges for those outside its operational areas.
- Pricing Variability: While comprehensive, Liberty Mutual insurance’s pricing may not always be the most competitive, prompting cost-conscious customers to explore alternatives.
#9 – Travelers: Best for Extensive Discounts
Pros:
- Comprehensive Coverage: Based on our Travelers insurance review, Travelers offers modified life insurance among its range of products.
- Convenient Self-Service Tools: Traveler’s offers user-friendly online account management and bill payment options, enhancing customer convenience.
- Trusted Brand Reputation: Traveler’s reputable brand may instill confidence in customers seeking modified life insurance.
Cons:
- Limited Information: Travelers lacks specific details about their modified life insurance policies.
- Targeted Online Advertising: Traveler’s use of targeted online advertising may raise privacy concerns for some customers
#10 – Progressive: Best for Local Presence
Pros:
- Excellent Customer Service: Progressive is renowned for its exceptional customer support, consistently ranking high in satisfaction surveys and offering personalized assistance.
- Competitive Pricing: Progressive provides competitive rates for auto, home, and life insurance, along with discounts for members.
- Membership Benefits: Progressive offers exclusive benefits such as financial planning services and discounts on various products and services.
Cons:
- Limited Eligibility: Membership is restricted to military personnel and eligible family members.
- Availability Restrictions: According to our Progressive insurance review, not all insurance products may be available in every location served.
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Modified Life Insurance
About 54% of U.S. adults had whole life insurance in 2020, with many assuming it’s unaffordable, especially with health issues.
However, numerous affordable options exist. In modified life insurance, premiums typically increase after a set time, while the death benefit remains constant, providing affordable payments initially but becoming pricier later on.
Types of Modified Life Insurance
Cost of Modified Life Insurance
Let’s first take a look at the cost of traditional term life insurance:
20-Year Term Life Insurance Monthly Rates by Age, Gender, and Coverage Limits
| Age & Gender | $500,000 Policy | $750,000 Policy | $1,000,000 Policy | $2,000,000 Policy |
|---|---|---|---|---|
| 50-Year-Old Female | $71 | $104 | $129 | $251 |
| 50-Year-Old Male | $93 | $137 | $174 | $341 |
| 60-Year-Old Female | $102 | $149 | $190 | $373 |
| 60-Year-Old Male | $139 | $204 | $255 | $505 |
| 70-Year-Old Female | $296 | $441 | $556 | $1,089 |
| 70-Year-Old Male | $445 | $664 | $847 | $1,676 |
| 80-Year-Old Female | $1,376 | $2,061 | $2,573 | $5,087 |
| 80-Year-Old Male | $1,776 | $2,662 | $3,455 | $6,902 |
Now, let’s look at the cost of modified life insurance:
Modified Life Insurance Monthly Rates by Coverage Level
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| AAA | $60 | $180 |
| Allstate | $55 | $160 |
| American Family | $55 | $160 |
| Erie | $50 | $150 |
| Farmers | $60 | $180 |
| Liberty Mutual | $65 | $170 |
| Nationwide | $65 | $170 |
| Progressive | $55 | $160 |
| State Farm | $50 | $150 |
| Travelers | $70 | $190 |
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Pros and Cons of Modified Life Insurance
The advantages of modified life insurance include:
- Affordable premiums initially make modified life policies attractive.
- The death benefit remains consistent regardless of the phase of the policy.
- Whole life insurance provides permanent coverage.
The disadvantages of modified life insurance include:
- Long-term costs are higher due to increased rates.
- Whole life insurance can be complex compared to simpler term life insurance.
- Cash value accumulation is slower, typically starting after rate increases.
Buying a Modified Life Insurance Policy
- Parents with children likely to leave home before premium hikes
- Individuals embarking on careers promising higher future earnings
- Single-income families anticipating a second earner in the future
Best Modified Life Companies
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Alternatives to Modified Life Insurance
Case Studies: Modified Life Insurance
Explore real-life scenarios showcasing the versatility of modified life insurance in meeting diverse financial needs and goals.
- Case Study 1 – Mortgage Protection for a Young Family: John and Sarah, a young couple with children, chose modified life insurance with a mortgage protection rider, ensuring their children inherit a debt-free home if one parent passes away.
- Case Study 2 – Income Replacement for a Self-Employed Professional: Emily, a self-employed consultant, opted for a modified life insurance policy with an income replacement rider to ensure financial stability for her family in case of disability or illness.
- Case Study 3 – Legacy Planning for Charitable Giving: Mark and Lisa, philanthropic couple, chose a modified life insurance policy with a charitable giving rider to leave a legacy for their favorite causes.
- Case Study 4 – Supplemental Retirement Income for a Business Owner: Robert, a successful business owner nearing retirement, opted for a modified life insurance policy with a cash value accumulation feature to boost his retirement income.
- Case Study 5 – Long-Term Care Funding for an Elderly Couple: James and Margaret secured a modified life insurance policy with a long-term care rider, ensuring financial stability for future care needs without depleting their savings.
The Bottom Line: Modified Life Insurance
If you’re ready to see what quotes might look like for you, enter your ZIP code into our free tool today.
Frequently Asked Questions
What is Modified Life Insurance?
Modified Life Insurance is a type of life insurance policy that offers a combination of whole life insurance and term life insurance. It provides a permanent death benefit like whole life insurance but features lower initial premiums during the early years of the policy.
How does Modified Life Insurance work?
What is the purpose of Modified Life Insurance?
Modified Life Insurance is designed to provide life insurance coverage while considering budgetary constraints in the early years. It allows policyholders to have more affordable premiums during the initial period, which can be beneficial when they may have other financial obligations or when their income is lower. Enter your ZIP code to compare now.
Why would I choose Modified Life Insurance?
Modified Life Insurance is often chosen by individuals who have a limited budget but still want some form of permanent life insurance coverage. It allows them to initially pay lower premiums during the early years when their financial obligations may be higher, with the understanding that premiums will increase later on.
Can I customize the modification period in Modified Life Insurance?
The modification period, which is the initial period with lower premiums, is usually predetermined by the insurance company and is not customizable. It is important to review the policy terms and conditions, like the MVP healthcare insurance, to understand the specific details of the modification period and how premiums will change after that period.
What happens after the modification period ends?
After the modification period, the premiums for Modified Life Insurance typically increase to a higher level. The increased premiums are necessary to sustain the policy, build cash value, and maintain the death benefit for the remainder of the insured’s life. Enter your ZIP code for further details.
What happens if I can’t afford the higher premiums later on?
It’s essential to carefully consider your financial situation before choosing Modified Life Insurance. If you can’t afford the higher premiums in the future, you may have the option to convert the policy to a different type of life insurance, such as a whole life policy, which typically has higher premiums but provides lifetime coverage.
Can I borrow against the cash value of a Modified Life Insurance policy?
No, Modified Life Insurance policies generally do not accumulate cash value like whole life insurance policies do. Therefore, you typically cannot borrow against the policy’s cash value. Review Primerica vs. American National Life Insurance for crucial decision making process.
Is the death benefit taxable?
In general, the death benefit from a life insurance policy is not taxable for the beneficiary. However, it’s always a good idea to consult with a tax advisor for specific information related to your situation.
Can I cancel a Modified Life Insurance policy?
Yes, you can cancel a Modified Life Insurance policy at any time. However, keep in mind that if you cancel the policy, you will no longer have coverage, and you may not receive any premium refunds, depending on the terms and conditions of the policy. To know more, enter your ZIP code below.
What is modified life insurance?
What types of modified life insurance can you get?
How much does modified life insurance cost?
What are the pros and cons of modified life insurance?
Should you buy a modified life insurance policy?
What are the alternatives to modified life insurance?
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