Graded Benefit Whole Life Insurance
Graded benefit whole life insurance is a form of guaranteed acceptance life insurance. Graded benefit life insurance is available to individuals who are unable to get standard whole or term life insurance due to age, chronic illness, or pre-existing conditions. Many life insurance companies do not offer this type of life insurance coverage to consumers under the age of 50. Consumers and policy applicants in good health and under 65 years of age may find cheap life insurance rates with standard carriers since graded benefit whole life insurance policies cost about double the amount of standard whole life policies.
Who Should Consider Graded Benefit Whole Life Insurance?
Consumers who have been denied life insurance policies due to age or chronic health conditions like insulin dependent diabetes, cancer or heart disease are the best candidates to get whole life insurance quotes. These types of whole life policies have limited benefits during the first two years after acceptance, so they are best for adults, parents, and seniors who are likely to live for more than two years after buying the policy. In the first two or three years, graded benefit life insurance usually does not pay the face value death benefit, but will refund the premiums paid into the policy with interest.
Whole Life Insurance Rates
A selling point of graded benefit whole life insurance is that the premiums are guaranteed to remain the same. In truth, standard whole and term life insurance have fixed premiums which do not increase over time. The death benefit is guaranteed after the second year of the policy and the whole life policy builds a cash value which can be used to secure low interest loans. However, the whole life insurance cash value is unlikely to be significant for the first 5 years so those applicants who prematurely die before that time may realize no benefits from the cash value or whole life insurance as an investment.
Guaranteed Acceptance Term Life Insurance
Before considering graded benefit whole life insurance, it is important for consumers to compare whole life insurance pros and cons with other types of life insurance, such as term, universal, or variable life insurance policy. Unlike graded benefit whole life insurance, guaranteed acceptance term life does not build cash value. Most of these policies also have restrictions on the death benefit for two years after the policy is issued and the interest paid on the premiums may be less than that of graded benefit whole life.
Term life insurance policies also have a specified term period, usually 10, 20, or 30 years, after which policies expire, but final expense term life insurance may have an open term and stay in force as long as the premium is paid or until the insured reaches an advanced age, usually 95.
Whole Life vs. Term Life Insurance
As a rule, the price of term life insurance is lower than that of whole life insurance policies, but both guaranteed acceptance term life and graded benefit whole life policies are not as cheap as standard life insurance. In most cases, the applications for these policies ask no health questions and no medical exam is required. The cost of these policies for healthy individuals under 65 years of age will be more than the cost of standard life insurance policies so it is best to apply for other life insurance coverage first.
Before applying to buy life insurance from a company, consumers should also consider comparing life insurance quotes online to find the best rates, coverage, and insurance company. WholeLifeInsurance123.com can help consumers find cheap life insurance with comprehensive coverage.
Life Insurance Quotes
Graded benefit whole life insurance may be the only type of life insurance that some individuals are eligible to purchase. Illness and advanced age can disqualify some consumers as applicants for life insurance and graded benefit whole life policies provide coverage for individuals, adults, parents, and seniors who are otherwise ineligible for life insurance protection. The death benefit is usually limited to $50,000 or less and is not paid if the insured person dies within two years of the policy issuance. Unlike term life policies, this type of whole life insurance does accrue cash value, and can be used as an investment.
To learn more about how affordable whole life insurance can be before buying coverage for you and your family, enter your zip code and compare whole life insurance rates. We offer free, instant whole life insurance quotes online to help you purchase the best, yet cheapest life insurance policy available. Just begin a whole life insurance quote now and find affordable life insurance for your needs.
