Affordable Life Insurance Protection for Your Family
What is a Graded Death Benefit in Life Insurance Policies?
This type of life insurance policy provides you with coverage with no physical examination required, but are intended mainly for high risk individuals or senior citizens looking to have insurance that can pay for their final expenses – burial and funeral costs.
Guaranteed issue life insurance policies usually have a graded death benefit, which means they do not pay out the full death benefit amount should the insured person die within the first two years of being insured.
Basic Features of Graded Benefit Policies
Whole Life Graded Death Benefit Coverage
A graded death benefit policy is a whole (permanent) life insurance policy with a waiting period of 2-3 years before the full (100%) death benefits are available.
Usually, this type of life insurance plan may be a good option for anyone who cannot get approved for standard life insurance.
With graded life insurance there is no doctor’s examination required.
And, if you have been turned down by other life insurers, you can still get coverage through a graded benefit plan that offers guaranteed acceptance.
Key Features of Graded Benefit Life Insurance Plans
What is a 2 Year Graded Death Benefit?
The definition of the graded death benefit is the waiting period imposed on all guaranteed issue life insurance policies that restrict the payout within the first 2 years of being insured by the policy.
What this means is if you (the insured person) passes away during the graded period (first 2 years of coverage) from natural causes, the insurance company will not pay the full death benefit to the beneficiary of your insurance policy.
In a graded benefit life insurance policy, the death benefits are not level. The beneficiary will be paid all of the premiums paid plus 10% interest on those premiums if the insured person dies within the first 2 years of being insured. If the insured dies after being insured for 2 years, the beneficiary receives the full death benefit.
Life Insurance Quotes
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