August 7, 2024

Graded Benefit Whole Life Insurance 101

Our Graded Benefit Whole Life Insurance provides permanent protection that will help your loved ones pay for end-of-life expenses, such as funeral costs, medical bills, and other debts.

How Does Our Graded Benefit Whole Life Insurance Work?

Our Graded Benefit Whole Life Insurance provides an easy way to help your loved ones pay for your end of life expenses. It is available to people ages 40-85, and you don’t have to take a medical exam to apply. Issuance of the policy will depend on answers to medical questions. We offer coverage amounts between $2,000 and $25,000, and you can choose to pay your premiums on a monthly, quarterly, semi-annual or annual basis.

When you purchase our Graded Benefit Whole Life Insurance, you will “lock in” a rate that will never go up. Your protection will last for as long as you pay your premiums. This whole life policy has a “graded benefit”. Here’s what that means:   

  • If you pass away due to natural causes in the first two years, the benefit paid will be a return of all the premiums you have paid, plus 5% interest for each year
  • If you pass away due to natural causes after your policy is in place for two years, 100% of the death benefit (or the coverage amount of your policy) will be paid
  • If you pass away due to an accident at any time while covered by this policy, 100% of the death benefit will be paid

 

What is a Cash Value?

Whole life insurance is unique because, unlike term life insurance, it offers a guaranteed cash value. Your policy’s cash value can be used to take out a loan*. Or, if you choose to surrender or end your life insurance policy, you can take the cash value with you. It’s important that you speak with one of our agents before taking out a loan or surrendering your policy so you can fully understand all of the pros and cons before making a decision.

*Cash values can be accessed through loans and/or withdrawals, but these will reduce the death benefit.

What is a Death Benefit?

If you, the insured person, pass away while your policy is active, then your beneficiary or beneficiaries will receive a lump sum of money. The amount of money is based upon the “face value”, or coverage amount, of the policy. The beneficiaries are simply the people who will receive this money, and they must be listed on the policy. There can be one or more beneficiaries.

An advantage of life insurance is that the death benefit is typically income tax-free**. This means that the money that is paid out will not be subject to income taxes in most cases. This can be a nice benefit in a lot of cases.

**According to current tax laws, IRC Sections 101 & 7702.

Who Should Consider Our Graded Benefit Whole Life Insurance?

Some examples of people who may benefit from Graded Benefit Whole Life Insurance include:

Final Expense Planning

Regardless of your stage in life, it’s wise to think about planning for the end of your life. Final expense planning can help ensure that you don’t leave your loved ones with the financial burden of paying funeral expenses, medical bills or other debts. Our Graded Benefit Whole Life Insurance is designed to help cover these types of costs.

Senior Citizens

Seniors may not qualify for some types of life insurance due to their age or health. Our Graded Benefit Whole Life Insurance is available to people ages 40-85, and the application process is simple. Annual, semi-annual, quarterly or monthly payments are available.

People with Health Issues

If you have health issues that make it difficult for you to get life insurance, our Graded Benefit Whole Life Insurance might be a great option for you. To apply, you only need to complete a simplified application. This can easily be done over the phone. No health exam is required!

Charitable Giving

Some people use life insurance as a way to leave a charitable gift to a person, a cause or an organization at the end of their life. Our Graded Benefit Whole Life Insurance can be a great way to leave a gift to something that is near and dear to your heart. We are happy to help you set up your beneficiary to ensure that the money will go exactly where you want it to go.

What Additional Benefits are Available?

BetterLife is a member-owned company. When you purchase a policy with us, you also become a member. You will automatically be eligible to apply for our Member Benefits, including scholarship opportunities, a benefit that can provide financial help if your house is damaged by a natural disaster, and more. Click here to learn more about our Member Benefits.

As you can see, our Graded Benefit Whole Life Insurance provides a number of options and benefits that can be of great value. If you’re interested in learning more, give us a call at 844-914-2026.

This information is describing our Graded Benefit Whole Life product (Policy Form ICC15 09-07-0195).