What is modified premium term insurance and how does it work?

Modified premium term life insurance is temporary life insurance protection that comes with premiums that change over time, on a regular basis.

Term life may provide coverage lasting for a period of up to thirty years, with options of 10, 15, 20, 25 or 30 year terms.

Modified term policies have premiums that change on a regular interval, usually every 5 or 10 years.

The change in your insurance premiums may increase or decrease each interval.

So, you may buy a term life policy with modified premiums that increase every five years, which enables you to initially purchase more life insurance than you may be able to afford with another type of term life plan, because your modified premiums are lower the first 5 years you are insured.