Graded life insurance is a policy that insures individuals with particular health concerns. These health issues are usually quite serious. In most instances, those seeking graded life insurance can't get traditional life insurance.
Instances When Graded Life Insurance Makes Sense
If you have a medical condition that is difficult to insure, graded life insurance is worth considering. If you can't get traditional life insurance, apply for graded life insurance. It is an affordable life insurance policy for sick individuals. If you are healthy, graded life insurance is not for you. This style of life insurance has a specific use. Those who qualify for traditional life insurance policies probably won't be able to secure a graded life insurance policy.
A Last Resort?
Those who have not been able to secure life insurance in the past should not give up. Graded life insurance is an excellent option for such individuals. In some instances, graded life insurance is not the only option. Some sick individuals secure traditional life insurance by applying with numerous insurance providers. In some instances, applying with the right company is what matters most. You should still consider graded life insurance even if you are eligible for traditional coverage. There are many factors in play. Of particular importance is the premium.
The Advantages of Graded Life Insurance
Graded life insurance solves the issue of cost and coverage for sick individuals. It mitigates short-term risk for the insurance provider. It provides reasonable monthly premiums to the party seeking life insurance.
However, here's the catch. The insurance company might not pay the full amount if the insured party passes. In some instances, graded life insurance policies pay nothing upon the insured party's death. A specific amount of time must pass in order for the death benefit to pay 100 percent. This time period is typically around 24 months. However, some insurance companies will pay a percentage of the death benefit if the insured party passes before 24 months go by.
As an example, many insurance companies will pay 50 percent of the death benefit payout if 12 to 24 months have gone by. If the insured party passes in the first 12 to 24 months, the insurance provider might pay some or all of the collected premiums to the heirs. Payment also hinges on the insured party's payment of monthly graded life insurance premiums in full.
Let us help you get Florence SC life insurance. Call CSP Insurance Services at 843-519-2557.