Not exact matches
These type plans are called
Graded Benefit plans, because they don't pay out their full death benefit for a few
Benefit plans,
because they don't pay out their full
death benefit for a few
benefit for a few years.
If your health situation is one that does not allow you to get a traditional life insurance policy,
because you may have recently had cancer or a heart attack or some kind of major health issue that does not allow you to get a traditional policy, then you may want to look into something called a
graded death benefit policy.
Because of this guarantee, this type of policy also has a
Graded Death Benefit.
That's a tough one
because it sounds like the only type of policies your mother would qualify for would have what is called a
Graded Death Benefit clause.
The policy is called «
graded»
because the
death benefit is
graded — it increases a bit for the first few years of the policy until it reaches the amount you buy — for example if you buy a $ 100,000
graded policy, the $ 100,000 won't be fully in effect until after 3 years (or two years depending on the company).
This is
because many guaranteed policies have a
graded death benefit.
The reason there is a difference between level and
graded death benefits is
because of how you qualify.
They're a great option in most states
because they have
graded death benefit term policies, rather than just whole life, which saves a bunch of money.
After all,
because the
graded benefit whole life insurance companies aren't going to require that you take a medical exam and aren't going to ask you any medical questions, in theory, you could literally be moments away from
deaths door when you decide to purchase your guaranteed life insurance policy and the companies would have no way of knowing!
Worst case scenario, even if someone dies during the
graded death benefit period, nothing has really been lost
because one can simply consider the payments made as a «savings account» since this money will be returned to the designated beneficiary.
That it's not all bad news when it comes to the
graded death benefit policies
because in most cases, if an insured dies from «natural» causes during the
graded death benefit period, most guaranteed life insurance policies (or at least the ones we offer here at TermLife2Go) will have some «reimbursement program» whereby the insured's beneficiary will receive back some if not all of the premium payments that the insured paid plus some type of additional interest earns as well.
Another advantage that can often get overlooked when looking at many guaranteed issue life insurance policies is that
because these types of
graded death benefit policies aren't going to ask about tobacco use, if one does use tobacco, a guaranteed life insurance policy may be a less expensive alternative to an insurance policy that would penalize them for their tobacco use.
This policy is called «
graded»
because it doesn't immediately provide the full
death benefit coverage.
These type plans are called
Graded Benefit plans, because they don't pay out their full death benefit for a few
Benefit plans,
because they don't pay out their full
death benefit for a few
benefit for a few years.
This is
because some burial insurance policies have what is referred to as
graded death benefits.
The reason that insurance companies may offer policies with
graded death benefits is
because of the additional risk that they take on with the insureds on burial insurance policies.
This is
because all insurance policies that do not have any health questions come with a
graded death benefit.
It's not all bad news
because with most guaranteed accepted life insurance policies, the best final expense and burial insurance companies will generally have a policy whereby: Should the insured die from natural causes during the
graded death benefit, most if not all of the paid premiums will be returned to the insured beneficiaries so it will be as though the insured didn't actually lose money by purchasing the policy and dying too soon!
Well, it's certainly natural to feel this way at least at first, but it's important to remember that
because guaranteed issue life insurance policies aren't going to require you to take a medical exam or answer any health - related questions,
graded death benefit clauses are really the only thing protecting an insurance company from insuring someone simply hours away from dying!
Accidental causes of
death such as a slip and fall, motor vehicle accident or natural disasters are causes of
death that are covered immediately are not subject to the
graded death benefit, simply
because accidental causes of
death are causes that can't be «predicted».
Which means that when you purchase a guaranteed issue life insurance policy,
because it will contain a
graded death benefit, you will not be covered in the event that you die from an illness for some set period of time (typically for the first 2 - 3 years after purchasing your life insurance policy).
Without a
graded death benefit in place, insurance companies would simply be unable to offer guaranteed issue life insurance policies simply
because they would have no way of knowing if they were accepting life insurance applications from individuals who were gravely ill.
Even in a «worst case» scenario where the insured dies from a natural cause during the
graded death benefit exclusion period,
because their beneficiary will still receive all of the premium payments the insured made plus some small amount of interested added on!