Graded Death Benefit
Insurance Glossary
A life insurance structure that pays only part of the death benefit if the insured dies of natural causes during an initial waiting period. That period usually runs two or three years, the reduced payment is commonly a stated percentage of the face amount that rises with each policy year, and accidental death is normally excepted and paid in full from the start. It appears on final expense and other policies issued with limited underwriting, and the length, the percentages and the exclusions vary by insurer.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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