Updated: Dec 9, 2020
Do you want burial insurance but were diagnosed with a major illness?
After being medically diagnosed with a serious illness, your only option may be a Graded or a Guaranteed Issue insurance policy, but then again it may not— it all depends on the medical condition and the severity of the condition.
Below we’ll explain how these plans work, and then help you understand if you would even need a Graded or Guaranteed Issue plan.
What types of plans are offered for burial insurance a.k.a. Final Expense insurance?
With Final Expense insurance, there are three (3) policy types with any given insurance carrier:
Level Benefit: The lowest-cost option with coverage that begins immediately.
Graded Benefit: This option has higher premiums than a Level Benefit AND a delayed payout during the first 2-3 years, depending on the insurance carrier.
Guaranteed Issue benefit: The highest-priced option and comes with a 1-2 year waiting period on the benefit payout, depending on the insurance carrier.
Graded and Guaranteed Issue plans cost more than a Level plan and comes with a waiting period. The length of the waiting period depends on the medical condition, but a 1-2 year wait is the most common wait duration.
Here's the most important points to understand:
"Level or Graded insurance coverage is something you must qualify for. You won’t have to take a physical exam, but at minimum you will have to
answer health questions. There are no
health questions for Guaranteed
What is Graded Life Insurance exactly?
A Graded Benefit plan is a type of Final Expense insurance which is Whole Life insurance.
A Graded policy comes with a waiting period during the first 2-3 years. For a non-accidental death of the insured, during the waiting period, the insurance carrier will refund all of the premium payments paid into the policy PLUS an interest fee, typically 5%-30%, depending on the carrier. For an accidental death of the insured, the entire death benefit will be paid to the beneficiary. Once the waiting period is over, the full benefit is paid for both accidental or non-accidental death.
What is a Guaranteed Issue (GI) life insurance policy?
A Guaranteed Issue is also a type of Final Expense insurance which is Whole Life insurance.
The difference between a Graded plan and Guaranteed Issue plans: A plan is Graded because of the answers to specific health questions while a Guaranteed Issue plan will insure someone with NO health questions asked.
A Guaranteed Issue policy also comes with a waiting period during the first 1-2 years. For a non-accidental death of the insured, during the waiting period, the insurance company will refund all the premium payments paid into the policy PLUS an interest fee, typically 5%-30% depending on the carrier. For an accidental death of the insured, the entire death benefit will be paid to the beneficiary. Once the waiting period is over, the full benefit is paid for both accidental or non-accidental death.
How Can AffinityQuotes Assist You?
If you were diagnosed with a major illness, AffinityQuotes will help determine if you need a Level, Graded, or Guaranteed Issue policy and then find the BEST insurance carrier for you.
Here’s why we believe that…
First, we are independent agency and represent dozens of different insurance carriers. We're not obligated to any one carrier which gives us the freedom to shop the best deal for YOU.
Having many companies to choose from is important if you have a major health concern.
To get the best deal you have to look at as many insurance companies as possible to find the one that will give you the best rates for the particular health issues you may have.
AffinityQuotes shops dozens of insurance carriers to find which one(s) will accept you based on your health conditions.
Whatever questions you have, we'll provide the answers to you at no cost.
Call 855-400-7766 to see what a licensed AQ agent can do for you.