graded life insurance

This contrasts with traditional or level life insurance policies, where premiums are locked in and stay the same over time.

Although the difference may not seem significant, it can impact your finances. While you may not see much cash value growth in two years, a more extended introductory period could cause you to lose some. You'll also be paying five to fifteen times more for similar coverage under a term policy than you would without a crucial policy feature.

As a short recap, there are partial coverage plans that payout a portion of the death benefit during the first two years and there are plans that will pay out 100% of the benefit right away.

An example: If you receive 10% interest from a company and make $1000 monthly payments, you get $1100 back.

There will be a waiting period of 2-3 years for any policy issued by any company that does not have health questions.

This statement is true for modified whole-life insurance.

Cash Value: With whole life insurance, your premiums will immediately fund your cash account. But, for most modified policies, you will have to wait until your premiums rise.

In other words, if a company pays 10% interest and makes $1000 of payments, you will receive $1100 back.

Death benefit protection doesn't change, but premiums aren't the same.