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Choosing the right life insurance policy for your needs means finding the one that offers the right benefits at the lowest premiums. Getting the right policy can be problematic for seniors, especially those with health issues. However, one type of life insurance policy offers substantial benefits for a reasonable cost, even for seniors who suffer from severe health conditions.

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What is Graded Benefit Life Insurance?

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This type of life insurance does not require a medical examination or asking health questions. Virtually everyone may qualify for this kind of insurance which provides coverage from $10,000 to $50,000 and up to $100,000, depending on the insurance company that provides the policy.

However, as indicated in the title, the full benefits do not come into effect until a pre-set period has been completed. In most cases, this is 24 months from the time the life insurance policy goes into effect until the benefits can be paid in full. Only the amount collected by the premiums and building interest can be provided to the beneficiary.

Three Reasons to Choose Graded Benefit

Despite the limitations, there are at least three good reasons to choose this insurance policy, especially for seniors with limited choices.

Acceptance: The first and perhaps most important reason is that you will be accepted for the policy. Illness, disease, or injury that would otherwise preclude you from having insurance coverage will not be recognized with graded benefits. Because there are no health questions or medical exams, no type of pre-existing condition will prevent you from purchasing the insurance. However, keep in mind that the policyholder must live at least two years before the full benefits become available.

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Affordable Rates: In many cases, life insurance is not so much denied as it becomes unaffordable because of pre-existing health conditions. Since this form of life insurance uses a graded benefit, it protects the insurance company from an unexpected death early in the policy’s life. In return, this means that the policy itself becomes more affordable. For seniors who otherwise would pay an enormous sum for life insurance that includes a medical exam or health questions, you may consider this policy instead.

Flexibility: One issue that graded benefit manages to overcome is the reliance on funeral or burial insurance that seniors often turn to when denied traditional life insurance. While funeral insurance is usually limited to the cost of the burial, the graded benefit can offer more to cover the debt, and expenses and even leave behind a legacy that can be used to help a student through college or make a down payment on a home.

Note that…

Life insurance that is a graded benefit may be the perfect way for seniors with notable health issues to afford a policy. It is easy to qualify for and quick to purchase, thanks to no medical exams or lengthy health questions. If you have had difficulty qualifying for standard life insurance policies, you will want to check out the graded benefit one.


Meet Aaron H., a senior life insurance agent from California with 15+ years of experience. With a major in finance, excellent analytical and communication skills, and a passion for helping clients find personalized solutions, Aaron is a trusted advisor in the industry. He stays up-to-date on the latest trends and developments by attending webinars and workshops, reading industry blogs, and writing informative blog posts on this website. Aaron also has a keen understanding of SEO and online marketing, which he uses to help his clients reach a wider audience and get the coverage they need. He cherishes spending quality time with his wife, two children, and elder parents.