Graded premium whole life insurance is a type of permanent life insurance that offers a level premium throughout the entire policy duration. Unlike term life insurance, which only provides coverage for a specified period, graded premium whole life insurance provides guaranteed death benefits, regardless of how much you have paid into the policy.
How Graded Premium Whole Life Insurance Works
Graded premium whole life insurance works like an ordinary whole life insurance policy. It has a cash value account that grows over time and can be used to pay premiums, cover costs in the event of death, or be withdrawn for other purposes. However, the premiums for graded premium whole life insurance are lower than those of typical whole life policies upfront but increase gradually each year for a few years before remaining the same.
Graded life policies differ slightly from modified whole life policies. With graded premiums, the premiums gradually increase yearly for a few years, then stay the same. Modified whole life policies have just one increase.
Benefits of Graded Premium Whole Life Insurance
Graded premium whole life insurance is a good option for anyone who wants guaranteed death benefits and a cash value account. It is especially beneficial for older people with health issues, as it protects against the risk of dying prematurely. In addition, graded premium whole life insurance is a good option for people who want to save money on their life insurance premiums.
Comparison Shopping for Graded Premium Whole Life Insurance
If you want graded premium whole life insurance, shop around and compare policies. Several different insurers offer this type of insurance, so you should be able to find a policy that fits your needs and budget. Consider factors such as the premium rates, death benefit amount, and cash value accumulation when making your decision.
|Graded Premium Whole Life Insurance||Modified Whole Life Insurance|
|Gradual increase in premiums for a few years, then stays the same||One premium increase|
|Lower premiums upfront||Higher premiums upfront|
|Guaranteed death benefits||Guaranteed death benefits|
Graded premium whole life insurance is a good option for those who want to ensure that their loved ones will receive a death benefit, regardless of how much they have paid into the policy. If you need help purchasing a life insurance policy, GetSure.org can assist you with a free consultation.
- QuickQuote. What Is Graded Premium Whole Life Insurance (2023)
- Aflac. What Is A Graded Benefit Life Insurance Policy?
- TruStage. Graded Whole Life Insurance
- Policygenius. What Is A Graded Whole Life Insurance Policy
- The Guardian Life Insurance Company of America. Graded Whole Life Insurance Vs Contestability Period