Traditional life insurance is low risk and offers guaranteed maturity returns to policyholders. Non-traditional life insurance combines investment and insurance in a single insurance. These plans invest in the market and have the potential to earn higher returns due to their higher risk. If you have not been able to get a traditional life insurance policy, you should know about these non-traditional life insurance plans.
Graded Life Insurance
Graded life insurance can be an option if you can not be approved for standard life insurance. No medical examination required. This type of full life insurance comes with a waiting period for full deaths. The payment is graded according to a schedule, depending on how long it has been since you bought the policy.
Full death benefits are not paid until after two or three years have passed with graded life insurance. If the death occurs during that waiting period, your beneficiaries will receive tax-free benefits, but not the full amount of the insurance. They can get back your premium plus interest (usually 10%) or a graded payment, which is a percentage of the death benefit. Rated policies are better because your beneficiaries will get more.
As graded life insurance policies are considered high risks, interest rates are higher than for ordinary insurance policies. On the plus side, this type of policy builds cash value and interest rates are guaranteed for life.
Although there are some health issues, most people can qualify for graduated life insurance – even people who have had heart disease, cancer or suffered a stroke – provided two years have passed since it occurred. Graduated insurance can serve as a last resort for people with major health problems who otherwise could not get life insurance.
Life Insurance with Guaranteed Question
Life Insurance with Guaranteed Question is also known as Guaranteed Acceptance Insurance or No Questions Life Insurance. It is a permanent, complete life policy that does not require a medical examination. You do not have to answer health questions or give the insurance company access to your records. The insurer guarantees that it will issue a life insurance as long as your age is within the allowable range when you apply. The age range is usually 50 to 80.
However, this life insurance policy has a catch, which is the waiting time of two years for most insurance policies and three years for some. If your death occurs during the waiting period, your beneficiaries will only receive back all premiums plus interest, usually 10%.
Cash death benefits with guaranteed life insurance range from $ 2000 to $ 25,000. These insurances have higher death rates than other types of life insurance.
Rated and guaranteed life insurance are two options to consider if you have not been able to get a regular life insurance. The main disadvantage of both types of insurance is the necessary waiting time during which your beneficiaries will not receive full benefits. Meet our friendly agent to review all of your life insurance options.