Which type of whole life policy is similar to the graded premium whole life policy?

The modified whole life policy is similar to the graded premium whole life policy because both types of policies feature a premium structure that changes over time.

In a graded premium whole life policy, premiums start lower than standard whole life premiums and gradually increase over a specified period before leveling off. This appealing feature allows policyholders to manage their cash flow more effectively during the early years of the policy, as the initial premiums are more affordable.

Similarly, a modified whole life policy also begins with lower premiums, which then increase at a designated point in time. After the initial period, the premiums stabilize to a higher amount. This design provides policyholders with an opportunity for more manageable payments at the outset, aligning with the needs of those who might anticipate changes in their financial situation.

The other policy types in the question do not share this characteristic. Universal and variable life policies typically have flexible premium payments and may involve cash value growth based on market performance, which does not correlate with the structure of graded or modified policies. Term life policies, on the other hand, provide coverage for a fixed period with no cash value component and do not entail changes in premium amounts over time, further distinguishing them from both graded and modified whole life policies.