Graded Benefits Life Insurance

If you are shopping for life insurance options for seniors and the elderly then you may have read about graded life insurance. This type of coverage is usually given when someone has some health issues that an insurer might view as risky. Your policy is graded, which means that the benefits are not fully payable until a certain amount of time has passed- usually two to three years.

How Does It Work?

For example, if an insurance company approves your policy with graded benefits, then the death benefit will not be fully payable to your beneficiaries for at least two years. During those intitial years after your policy is approved, only a certain percentage of the face amount is paid, or some insurers will only pay back those premiums that were paid into the policy. Let's say that you are 80 years old and you have been approved for a $10,000 policy. If you die within the first year, your beneficiaries may only get $4,000. If you pass away in the second year, then your beneficiaries may get $6,000. After the second year, the face amount is fully payable. 

How Much Is A Graded Policy?

Every insurance company has different underwriting standards, so if you have some health issues it is best to compare multiple rates before you decide on a policy. This is beneficial to you because some companies may not deem your health as poor as others. Your goal is to get the lowest possible rate for your particular health situation. Get a free quote today to compare multiple rates from carriers who specialize in life insurance for seniors and the elderly.