Insurance companies sometimes use a two-year limited benefit period to cut their costs, especially if they are offering a guaranteed acceptance policy which is a high financial risk for their business. This waiting period may also be called a graded death benefit.
During the waiting period, the beneficiaries of those who pass away within these two years won’t receive the full death benefit. Instead, they might receive a percentage of it, receive back all or a portion of the premiums that were paid, or some other arrangement of partial compensation.
When exploring companies, make sure you clearly understand if there is a limited period and exactly what the payout will be if you pass during that period.