Graded Benefits Life Insurance is for Seniors Who Have Health Issues
Let's face it. As you age, it is often inevitable that your health will change. For some seniors, this may be just some aches and pains. For others, it could be
much more serious.
If you have a history of heart disease, cancer, stroke, diabetes, alzheimers, or any other serious health
concern, then life insurance carriers view you as high risk.
What does this mean? Well, it's pretty simple. We know that life insurance companies are for profit
businesses, so they are trying to make the most money they can. So if you are considered to be a risky applicant,
some companies will deny you coverage, while other companies charge you a higher rate, or offer you an alternative
policy that has built-in protections for them
One of those alternative policies is a graded life insurance policy.
Wha is Graded Life Insurance and How Does It Work?
This type of coverage is usually given when someone has some health issues that an insurer views 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.
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.
Graded Life Insurance Policies Have Higher Premiums
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.