So maybe your health has placed you in a high risk life insurance category? Are you assuming that the best life insurance companies won’t give you the life insurance coverage you want you need? Unless you have spoken to a seasoned independent professional agent, don’t make assumptions that you do not have many life insurance options available.
With that said, in some rare cases, there are those individuals that will only qualify for high risk life insurance. That is where a graded type of life insurance comes in.
If your in the small minority… don’t lose heart. The news isn’t all bad as you still have options for life insurance.
It all starts with looking at a Graded Whole Life insurance policy.
Graded death benefit life insurance is designed for those who are indeed, high risk life insurance candidates.
Some of these policies will have just a couple simple health questions to qualify while others will have none at all.
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 (among others), is a life insurance policy 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, it has a limited death benefit for natural death. That is where the term “graded” comes in.
Depending on the carrier, a 2 or 3 year limited benefit period is written into the policy.
The typical waiting or “limited” death benefit is a return of all paid premiums plus a interest rate of 6-10% to the named beneficiary. Some graded policies with with some basic health questions will actually pay a good percentage of the death benefit during the “limited” benefit period.
Again, the limited (2-3 year) period is for natural death only (heart attack, cancer, stroke etc). The waiting period must be written into the policy and made visible in any advertisement. Upon expiration of the limited or waiting period, the full benefits of the policy are available.
Your independent agent should be disclosing this as well before you purchase coverage.
Highlights of a Graded Death Benefit Life Policy
- No medical exam
- Very few medical questions compared to numerous on a traditional life application. Many graded policies have no health questions at all.
- 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.
What is Guaranteed Acceptance Life Insurance With No Health Questions For?
If you or someone you know has a high risk situation such as a terminal health condition, a Guaranteed Acceptance policy may be in order. Anyone typically 50-85 can obtain this type of policy as there are no health questions to weed the applicant out. This type of graded policy is also know as Guaranteed Issue Life policy. These are both types of Graded life insurance.
Policies from a few thousand up to $100,000 are available. Depending on the amount of insurance you are needing, more than one policy can be purchased.
This type of life insurance is the last option to consider when a good professional has shopped all the other possibilities for you.
How to Obtain Your Quote
Give us a call at 800-598-6445 or you can use the Instant Quote tool in the right sidebar. Be sure to enter “Poor Health” under the health classification to see the best offers for Guaranteed Acceptance life insurance with no health questions.
Can I Qualify for a lower cost Graded Benefit Life Policy Though? I’m just not sure.
Guaranteed Issue policies are always graded. They have no health question. Having no health questions at all means higher premium. Try this little test to see if you can improve your situation.
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. You may also qualified for better rates if you are able to answer more detailed health questions. Give us a call at 800-598-6445 to see what you really qualify for.
We Would Like To Be Sure You Can’t Qualify for Something with Full, Immediate Coverage 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, epilepsy, 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. This is graded life insurance with no medical questions at all.
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 whole life insurance can be a solution when harder to qualify for products are just unobtainable. About 10% of those 55+ are stuck with a tough health condition that insurers can’t cover without using this type of high risk life insurance.
Maybe you have been 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. Understand that with the higher risk to the carrier will come a higher premium for coverage.
There is a fine line with high risk life insurance policies. We urge you to speak with a seasoned, high risk life insurance professional.
Life insurance companies look at health risks differently. The differences can be drastic. Being declined previously does not be you must resort to a graded or guaranteed acceptance policy either.
Let us help you sort out the best option for you.
Questions, quoting and application can all be done by phone or our online quoting tool can also get you started (right sidebar).
We’re here to help solve your problem or need at 800-598-6445 to discuss your situation.
Feel free to comment below.
Special Risk Life is a veteran independent life insurance agency that specializes in guiding people with even the toughest health conditions thru the life insurance process. We are very passionate about helping people get the financial protection they want while delivering affordable coverage people can absolutely count on.