Graded Life Insurance Plans – What are they?

Graded Life Insurance Plans – What are they?

This article will cover the explanation of Graded Life Insurance plans. I will mention a few key carriers but I want my readers to understand that I do not work for these companies, but rather , I am an independent Broker and I am licensed  to run quotes and assist people in the application process.

Graded Life Insurance Plans are designed for people who suffer from severe health impairments. They are sometimes known as Guaranteed Issue Life Insurance Plans.

These plans ask no health questions. The applicant will be approved, no questions asked.

Most Graded Plans – have the following requirements:

1. Carriers require the applicant to be at least 50 years old. I have one carrier that will offer coverage for those 40+. Max age of issue is generally up to 80 years of age.

2. Face amounts of up to $25,000. Some will go higher, some will be lower

Graded Life Plans – Policy Information

These plans are modified in their benefit payout.

1. Most carriers offer a 24 month waiting period BEFORE the full face amount of the plan will be in force.

2. Should death occur during the first 24 month period, the beneficiary would receive the premiums paid back, plus some interest. Interest paid will differ from carrier to carrier.

For Example: Gerber Life will pay back 10% , Kemper Life will pay back 20% interest. A key point to remember: The higher the interest pay back , the higher the premium rates.

3. Carriers may offer 100% face amount pay out , regardless of the graded period, should death occur by an accidental death.

Here are some sample quotes:

I ran a quote based on a 50 year old Male, State of Georgia, $10,000 Graded Life Plan.

Gerber Life – $38.41 – 24 month graded plan

Vantis LIfe – $40.66 – 24 month graded plan

Kemper Life – $55.76 – 24 month graded plan

There are a few other carriers, but the prices are very high.

How do I receive a quote?

You will have to give me a call or put in a quote request. It is a simple process and will only take a few moments to complete. My number is 512-963-5000.