Level Benefit – Designed to lock in a premium and death benefit amount for the entirety of your life. Level Benefit amounts range from $2,500-$50,000 depending on the life insurance company. The great part about a level policy is there is no waiting period like there is with Graded and Guaranteed Issue.
Graded Policy – Designed for the people that don’t qualify for a level benefit policy and are not in bad enough health for a Guaranteed Issue policy. Depending on the life insurance company a graded policy may offer a 20% payout if you pass in year 1, 50% payout if you pass in year 2, and the full death benefit payout in year 3.
Guarantee Issue – Designed for those that can’t qualify for any type of life insurance coverage. If you die within the first 2 years the policy with pay 110% of premiums paid to your beneficiary.