What Is Graded Benefit Whole Life Insurance? 
Graded Benefit Whole Life Insurance is permanent life insurance that does not pay out the full death benefit for natural death until you have had the policy for a while . The average graded period is two years . During this time it may pay a percent of the death benefit for death due to natural causes such as illness , or it may return all you paid in plus a little extra . After 1 to 4 years , a graded policy will pay 100 % of the death benefit . They usually also pay 100 % from day one for accidental death . 