What Exactly Is A Graded Benefit Whole Life Insurance? 
Graded whole life policies are designed to allow a person who would otherwise be turned for traditional whole life insurance due to existising health conditions to purchase a whole life policy . They are usually offered and purchased as a small final expense policy . Because the policy is graded you wo n't receive full benefits for the first couple years . Benefits are limited to the premiums paid in plus and interest factor that is determined by the insurance company and this can vary depending on the insurance provider . Once a policy holder is past the first two to three years full benefits would be paid to the beneficiary . 