What is a graded death benefit?

Question

As things stand, I am comparing a small final expense or burial policy with simply setting aside money for funeral costs. As things stand, the policy is easier to qualify for but may have graded benefits or high premiums relative to the death benefit. What makes this difficult is that a recent family or job change made me realize that the policy may no longer match the reason I bought it.

Soradin · Accepted Answer

It may limit the full natural death benefit during an early policy period while providing different payment for accidental death. When evaluating the policy, buyers should compare benefit amount, premium schedule, waiting periods, graded benefits, health questions, and total expected cost. As part of the policy review, final expense or burial insurance is usually a smaller life insurance policy marketed for funeral and related costs. The policy terms and current illustration provide the proper baseline for the review, then have a licensed insurance professional document the guarantees, exclusions, riders, and surrender restrictions that apply.

What is a graded death benefit?

Soradin

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