what is a graded benefit life insurance policy?

Modified whole Insurance provides lower premiums for a limited time (usually 2 to 3 years, but occasionally up 5 or 10). Then the Policy will continue at a higher rate. Although it may offer some savings, the complexity of the policy options and high premiums make it not the best option for life insurance.

An insurance policy allows the insured to pay less premium than usual over a specified period. After this period, premium payments are increased to an agreed-upon sum greater than usual for the Policy's lifetime.

Why are we saying that?

Also known as modified premium whole life, a modified whole life policy comes with low introductory premiums. The premium goes up only once after the introductory period and remains the same the rest of the time the Policy is in force. Buying a modified premium policy is a way to obtain a higher death benefit sooner, before you'd typically be able to afford the premiums, instead of waiting to buy Coverage or buying more Coverage when you're older.

ABC insurance is an example of a company that excels in ensuring people with diabetes. It also offers rock-bottom rates. This is the way their underwriting was designed.

The Cash value increases that you can borrow.

Your Policy may be cancelled if premiums don't go up. Also, you could be subject to high surrender costs. Even more important, your family could lose their financial protection.

Modified life policies are usually more expensive than traditional level life insurance plans after the period with lower premiums ends.

The good: The best part of a whole-life modified plan is the ability for folks with serious health issues to secure new Coverage. Most modified life plans have very limited or no medical/lifestyle underwriting. If you have dire illnesses, you can still get new Coverage. Depending on the nature of your health issues, modified whole life may be the only way you can get a new life insurance policy.