A graded Life insurance policy is intended for people in very bad health who can't qualify for a full benefit policy.
If you have a graded policy for $10,000 and died during the first 12-months, it would usually pay only 30% of the death benefit or $3,000
If you died during month 13-24 it would usually pay 70% or $7,000
After 24-months it would pay the full $10,000
Before you sign up for a graded benefit policy, make certain that you have a very experienced agent review your options. Many people sign up for a graded policy after one or two companies turn them down for full benefit. An experienced agent can check your health against dozens of companies and often get you approved at full benefit and a lower premium.
Graded life insurance means that the death benefit is graded ... "gradually passes from one level to another", per the dictionary. The death benefit is not paid to the beneficiary 100% in year one, except for accidental death. For death due to natural causes (illness), it pays a portion of the death benefit in year one, then another portion in year two, and so on. Most policies are graded two years, but some are graded three years.
Graded life insurance allows people who have a hard time getting regular life insurance to be able to get something, rather than go without.
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If you have a graded policy for $10,000 and died during the first 12-months, it would usually pay only 30% of the death benefit or $3,000
If you died during month 13-24 it would usually pay 70% or $7,000
After 24-months it would pay the full $10,000
Before you sign up for a graded benefit policy, make certain that you have a very experienced agent review your options. Many people sign up for a graded policy after one or two companies turn them down for full benefit. An experienced agent can check your health against dozens of companies and often get you approved at full benefit and a lower premium.
Graded life insurance allows people who have a hard time getting regular life insurance to be able to get something, rather than go without.