So your health has placed you in a very high risk category? Maybe you are assuming that the best life insurance options companies won’t give you the coverage you want you need? Don’t lose heart. The news isn’t all bad as you still have options for life insurance. Graded death benefit life insurance is designed for those who are indeed, high risk life insurance candidates.
If you are unable to qualify for traditional life insurance or simplified issue whole life insurance, most people can still qualify for a policy that has a Graded Death Benefit.
What is a Graded Death Benefit in Life Insurance?
The key word is obviously “graded” right?
So what is does “graded” really mean here?
A Graded Death Benefit Life Insurance policy, sometimes called graded life insurance, is coverage that has a 2-3 year waiting period for full coverage for natural death. While it does cover the insured for full accidental death upon policy issue, for natural death, it is restricted. The “graded” limitation is a typical return of all paid premiums plus a interest rate of 6-10%. That would be the payout to the beneficiary if natural death occurred during the waiting period. The waiting period is written into the policy and it always identified in the product literature. Your independent agent should be disclosing this as well. Policies from different carriers vary. As stated earlier, 2-3 years.
Highlights of a Graded Death Benefit Life Insurance Policy
- No medical exam
- Very few medical questions compared to numerous on a traditional life application
- Fast Approval – These policies are approved based on simple criteria and result in fast issue. Less than a week is common.
- Reduced Death Benefit for Natural Death – first 2-3 years depending upon the carrier, limited payout on natural death. This is a way the insurer negates some of the additional risk posed by your rate classification.
- Whole Life Insurance – We do not recommend term life insurance for the typical people who need to purchase these types of policies for burial or funeral expenses.
How to Obtain Your Quote
Sorry to say, but our quote calculator on the sidebar cannot handle this type of quote. The recommendation is to give us a quick call. We can still get you a quick quote so you can move on with your day. 800-598-6445
Can I Qualify for a Graded Benefit Life Insurance Policy Though? I’m just not sure.
Ask yourself the following questions. You must be able to honestly answer the question with a “NO” to qualify for a Graded Benefit Life Insurance policy (no sugarcoating).
1) Have you been diagnosed as having or been treated by a
a. Human Immunodeficiency Virus (HIV), Acquired Immune
Deficiency Syndrome (AIDS) or AIDS Related Complex
b. Alzheimer’s disease (dementia), Amyotrophic Lateral Sclerosis
(ALS), mental retardation or Down’s Syndrome or do you
require the assistance of another person for dressing,
bathing, toileting, or mobility or do you use an oxygen tank?
2) Have you,
within the past 2 (two) years:
a. Had a heart attack (myocardial infarction) or stroke
(cerebral vascular accident)?
b. Had or are now awaiting an organ or bone marrow transplant
(except as a donor)?
c. been diagnosed with cancer, received or been prescribed
radiation or chemotherapy or have you received or been
d. Been confined to or been advised by a licensed medical
professional to be admitted to, a nursing home, hospice,
extended care or special treatment facility or are you now
e. Used controlled substances such as cocaine, heroin, amphetamines,
barbiturates or hallucinogens except as prescribed
by a physician or been treated for or been advised
by a physician to seek treatment for drug or alcohol use?
f. Been advised by a licensed medical professional that your
life expectancy is less than 24 months?
g. Had more than one DUI (DWI) violation, been convicted of
a felony or are you now on probation?
If you were able to answer “NO” to all the above questions, you qualify to apply for coverage. Call us to get a graded benefit quote at 800-598-6445
We Would Like To Be Sure You Can’t Qualify for Something with Full Coverage Immediately and Save You Money First
A good percentage of people with tough life insurance cases can still qualify for a traditional life insurance policy, which costs a lot less than a graded benefits policy. It is best to speak to a high risk specialist. So many people have been misled into thinking they can’t qualify elsewhere because they were told no one would accept them.
At Special Risk Life Insurance, we’ve insured the tough cases with traditional policies
Whether you have Diabetes type I or II, have heart disease, heart attack history, stroke history, cancer history, Obese up to 400 lbs, have multiple DUI’s, epilepsey, multiple sclerosis… you probably get the picture… just about anything be insured traditionally with the right life insurance carrier.
If You Answered “YES” to Any of the Above Questions
We now need to look specifically at a guaranteed issue policy.
For example, if you’ve been diagnosed with terminal cancer, AIDS or Alzheimer’s Disease, the only type of life insurance you can qualify for is a guaranteed issue policy with no medical questions. Gerber Life is one our very competitive carriers that offers coverage you likely need.
What if I’ve been Declined for Life Insurance multiple times?
If you’ve been declined by multiple insurance companies “easy to qualify for, no exam products”, you’ve found the right policy for you.
Graded Whole Life Insurance and Conclusion
Graded life insurance can be a solution when harder to qualify for products are just unobtainable. Sometimes we are stuck with a tough health condition that insurers are leary of. Maybe you have get getting along for a few years this way, but now you feel the need to get life insurance. Graded whole life insurance exists to match the needs of the insured, yet offsets some of the risk to the life insurance company.
There is a fine line with high risk life insurance policies. We urge you to speak with a high risk life insurance professional. Life insurance companies all look at health risks differently. Being declined previously does not be you must resort to a graded policy either. Let us help you sort out the best option for you.
Questions, quoting and application can all be done by phone. Just give us a call a 800-598-6445 to discuss your situation. We are here to help you solve your problem.