Graded Death Benefit Whole Life Insurance

Sometimes "stuff happens" in life. Although we may have strived over half a century to maintain a healthy lifestyle, an accident or particular genes could have tainted our medical history. However, we still have options to consider, such as graded death benefit whole life insurance.

How Does a Graded Death Benefit Whole Life Policy Work?

Whole life insurance provides coverage for your entire life. In the majority of whole life plans, you are required to pay the same premium for the entire duration of your life. However, the premiums are smaller than those for term life insurance policies.

Who Should Purchase Graded Death Benefit Whole Life?

Graded death benefit whole life insurance is ideal for employees who cannot pass an insurance company's medical underwriting standards. It provides a particular amount of coverage for those with a history of health difficulties. Typically the coverage increases during the first and second years of the plan, with full coverage initiating during the third year.

Frequently, after the second year of the policy, this type of policy provides a death benefit, for the remainder of the policyholder's life. Also, other non-forfeiture options are offered, such as cash loans, premium loans, and cash values.

Advantages of the Graded Death Benefit Whole Life Option

Several benefits exist with graded death benefit. Typically the application is very simple and only basic underwriting is required. Also, no medical exam is required, so pre-existing health issues will not be a factor. In addition, the policyholder can avail of the graded death benefit for the first few years. Lastly, member benefits are frequently available, at no additional charge.

Disadvantages of Graded Death Benefit Whole Life Plans

However, some disadvantages also exist. The starting premium is fairly low. Still, it becomes flat within half a decade to a decade. Then the premium typically becomes higher than a basic regular whole life policy that would have been purchased. Furthermore, the cash values first increase significantly slower. This is because more capital is initially devoted to the death benefit.

Before making a decision that you may regret later, let the experts at Rapid Decision Term Life determine if graded death benefit whole life insurance would best meet your insurance needs.

At Rapid Decision Term Life, we can help you to determine if graded death benefit whole life insurance would be ideal for you!

Start here by requesting a whole life insurance quote online—at no charge!