Graded Benefit Life

A senior couple walking along the beach

Graded Benefit Life Plan

Did you know that a funeral could be the third largest expense you make in your lifetime, often totaling $10,000 or more with added fees for ceremonies, transportation and other incidentals. If you've worried having enough family protection, a graded benefit life plan may help put your mind at ease.

Over the past decade, the median cost of an adult funeral in the United States has increased 28.6 percent. The national median cost of a funeral for calendar year 2014 was $7,181 and was $6,078 for cremation, but that’s not all. The cost does not include cemetery, monument, vault or marker fees, or miscellaneous cash-advance charges, such as for flowers or an obituary.

Looking to received help from Social Security or military benefits? A surviving spouse or child may only receive a special lump-sum death payment of $255 if they meet certain requirements. Furthermore, the burial allowance for a non-service-connected death is limited to $300, and $2,000 for a death connected to military service.

Sources: National Funeral Directors Association’s 2015 Member General Price List Survey, www.nfda.org; Social Security Administration, www.ssa.gov; U.S. Department of Veterans Affairs, www.benefits.va.gov

What is Graded Life Benefit?

With the Graded Benefit Life plan, adults ages 45-85 can get $2,500 to $15,000 of coverage with no medical exam and rates that don't go up. We offer coverage through Royal Arcanum.

Eligibility

You are guaranteed this insurance if you can make the following statements in the application:

  1. I am not now confined to a bed or in a hospital, clinic, rest or convalescent home.
  2. I have not been diagnosed or treated by a licensed medical doctor for AIDS or AIDS Related Complex (ARC).

Plan Provisions if Death Occurs

  • 1st certificate year - The premiums paid will be returned with 4.5% interest.
  • 2nd certificate year - The death benefit is 25% of the face amount.
  • 3rd certificate year - The death benefit is the face amount.

If death in the first or second year results directly from accidental bodily injury, the death benefit will be the face amount.

For more details, contact our office.