Obtaining life insurance for elderly over 90 is not easy as there are few policies which are available. One of the few is known as graded benefit life insurance which offers some advantages to seniors who have reached their 90s.
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What is Graded Benefit?
This is a life insurance policy that will only pay out the premiums put into the policy, along with interest, over the first two years on average.
This means that if the policy holder passes away before the first two years have elapsed, the beneficiary will only receive the premiums that were paid along with interest. However, there are certain exceptions to some graded benefit policies that focus on the cause of death.
Several insurance companies would pay the full amount of the benefits within the first two years if the cause of death was an accident, such as a car collision or similar incident. However, non-accidental deaths that were not suicides such as heart failure, cancer, or natural causes, for example, means that only the premiums and interest will be paid to the beneficiary if the death occurred within the first two years of the policy being issued.
Why Graded Benefit Policies Work for Seniors:
Easier to Obtain: Compared to qualifying for a standard term life insurance policy, a graded benefit is easier to get because it withholds full advantage for the first two years.
Less Hassle: There are no medical exams or even health questions because the graded benefit protects the insurance company from early death. This means that qualifying is simple and straightforward.
Reasonable Rates: The premiums for graded benefit policies tend to be reasonable for most seniors who want financial protection for their family in case they should pass away. It should be noted that graded benefit is usually cheaper than guaranteed life insurance.
For many seniors over 90, its one of the few types of policies that are affordable if you do not qualify for standard life insurance.
Is Graded Benefit Right for You?
For seniors who have reached their 90th birthday, a graded benefit policy is one of the few that they can qualify. However, there are insurance companies that offer lower-priced standard policies that they may still qualify for depending on their health and other factors.
Since standard life insurance that includes a medical exam is considerably lower in cost, all efforts at getting that type of policy should be exhausted before going to the graded benefit.
If you are looking for adequate burial insurance for over 90 years, then graded benefit is the type of insurance that you should consider. It is relatively easy to obtain, and most will qualify regardless of their health.
However, if you are in good physical condition and healthy, you may want to consider qualifying for standard insurance policies because they are less expensive and the full benefits payout upon death.