Unfortunately, not everyone is able to successfully apply for a regular life insurance policy, and these people may be interested in seeking out graded benefit whole life insurance. Some individuals, typically those who have certain types of health issues, especially when they are ill, are frequently rejected for a standard policy. This is where a graded benefit whole life insurance policy may be necessary and helpful.
Generally speaking, as with any life insurance policy, there will be a death benefit that comes with graded benefit whole life insurance. However, the amount of this money will vary, depending on different circumstances. If the person who holds the policy were to pass away within a year of having it, the beneficiary will only receive a certain percentage. However, if death occurred within two years or more, the percentage that goes to the beneficiary will be higher. By five years, the death benefit will be at peak level.
Because of the risks that go along with an individual who has poor health and an illness, the premiums paid toward graded benefit whole life insurance are generally quite high. This, of course, is due to the fact that the individual is a higher risk than someone who is in good health. At the same time, this type of life insurance policy is generally thought of as being ideal for individuals who have medical conditions that leave a possibility of them dying within two years, such as someone who has terminal cancer. In some cases, a graded benefit whole life insurance policy is appropriate for an older person who is plagued by a myriad of health conditions, especially when they are living in a nursing home. In many cases, the individual will be allowed to receive a benefit coverage of up to $25,000, although the premiums paid toward that will no doubt be higher. In general, people who take out this type of life insurance policy are also not required to take medical exams.