Graded Death Benefit Life Insurance — Coverage Across 30+ States Nationwide

What is Graded Death Benefit Life Insurance?

Graded death benefit life insurance is a type of permanent whole life insurance designed for individuals with certain health challenges who may not qualify for traditional life insurance policies. Unlike standard coverage, graded policies include a graded benefit period—usually 2 to 3 years—during which only a portion of the death benefit is payable if the insured dies from natural causes. Accidental deaths, however, are typically covered at 100% immediately.

This product offers no medical exam and fewer health questions, making it an accessible option for many people with high-risk health conditions who want the peace of mind that comes with life insurance.


Who Qualifies for Graded Death Benefit Life Insurance?

Graded death benefit insurance is designed for applicants who:

  • Have certain health issues such as controlled diabetes, mild heart conditions, or other manageable illnesses
  • Are unable to pass traditional underwriting due to health or age restrictions
  • Can honestly answer “No” to severe health conditions like dialysis, terminal illness, Alzheimer’s, or HIV/AIDS

If you cannot qualify for graded death benefit coverage, guaranteed issue life insurance may be an alternative—though those policies often come with higher premiums and a waiting period before full benefits kick in.


How Does the Graded Benefit Period Work?

During the first 2 to 3 years after policy issuance, if death occurs due to natural causes, the policy pays a partial death benefit, often returning premiums paid plus interest or a fixed percentage (such as 30% yr 1, 70% Yr 2 and 100% after 2 full policy years.). Accidental death, however, is generally covered in full from day one.

After the graded period ends, the full death benefit is payable regardless of cause of death.


Advantages of Graded Death Benefit Life Insurance

  • No medical exam required — simpler and faster application process
  • Fewer health questions compared to traditional policies
  • Guaranteed coverage after graded period
  • Immediate accidental death coverage
  • Permanent coverage that does not expire as long as premiums are paid

Consider Other Options First

At Maple Valley Insurance Group, we believe many people who think they need graded coverage can actually qualify for simplified issue or even traditional life insurance with no graded periods and lower premiums.

We recommend getting a full underwriting evaluation first. Graded policies are typically best reserved for those with significant health challenges that disqualify them from other coverage types.


How We Help Across 30+ States

Maple Valley Insurance Group is licensed in over 30 states nationwide, including but not limited to Michigan, Ohio, Wisconson, Alabama, Florida, New Mexico, Texas, and more. Our independent agents have access to multiple top-rated insurance carriers offering graded death benefit life insurance with varying benefits tailored to your unique health situation.

We can help you find the best policy that fits your budget and coverage needs. Most people who believe they won’t qualify end up being pretty surprised. We get people day 1 coverage in excess of 80%


Get Your Free, No-Obligation Quote Today

Ready to explore graded death benefit life insurance options? Or want to see if you qualify for lower-cost simplified or traditional coverage?

Contact Maple Valley Insurance Group today! Our licensed agents serve clients nationwide and can help you compare plans, understand benefits, and secure the right coverage for your situation.


Call Us at: 269-244-3420

Or Request a Quote Online

If your still thinking about it, use the instant quote tool on this page. It will give you an accurate quote for graded whole life insurance by selecting “Decent Health” under the Health Class dropdown menu. You will have a good price comparison to get started.


Important Disclaimer

Product availability, policy features, premiums, and underwriting criteria may vary by state due to local insurance regulations and carrier authorizations. Maple Valley Insurance Group is licensed in over 30 states and will help you find coverage available where you live.

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