the plans

I

The Level Plan

Qualifying for the level plan means you are in great health and answer favorably to all the health questions during the phone interview. The death benefits are applied on the first day of the policy. Depending on the carrier, Level is also known as Preferred to describe their top product. Traditionally Level-Benefit has the most economical premiums and optional add-on’s known as “riders” to the policy. The best thing about this product is that it has the most flexibility in terms of policy limits and issue age. Unlike Graded, Modified or Guaranteed Issue Plans, Level Plans are typically for clients who are in good or excellent health.

This product will be the best priced and immediate death benefits are available.
(Health questions are a yes or no questionnaire via phone interview).

Benefit for Accidental Death

No waiting period, full death benefit

Benefit for Non-Accidental Death

No waiting period, full death benefit

Underwriting

Simplified issue underwriting


II

The Graded Plan

Every Graded plan has its own rules and guidelines. This type of plan has partial waiting periods that vary from company to company. This will typically be for people with specific health conditions that are classified as higher risk. The waiting period is typically two years and pays a percentage of the death benefit that increases each year. Some carriers do not pay the full death benefit out until the fourth year. This product is generally for clients with past health concerns or have a specific health issue that is chronic or recent.

This product will be at a midpoint price and there will be a waiting period on non-accidental death benefits.
(Health questions are a yes or no questionnaire via phone interview).

Benefit for Accidental Death

No waiting period, full death benefit

Benefit for Non-Accidental Death

Waiting period, death benefit is equal to a percentage of the death benefit

Underwriting

Simplified issue underwriting


If non accidental death occurs in the first two years.
Example for graded plan:

Y1

30% Payout

Y2

70% Payout

Y3

100% Payout


III

The Modified Plan

Modified Policies are very similar to Graded Policies, but there are a few very distinct differences. Just like Graded Plans, Modified Final Expense Policies dive into your health conditions and place you in a more restrictive plan, this may include recent stroke, cancer, alcoholism, etc.

For this policy, the carrier will return the paid premiums, plus 10 percent interest on those premiums if a non-accidental death occurs before two years. For a Non-accidental death, 100 percent of the death benefit will be awarded if the death occurred in year three or later depending on the carrier.

(Health questions are a yes or no questionnaire via phone interview).

Benefit for Accidental Death

No waiting period, full death benefit

Benefit for Non-Accidental Death

Waiting period, death benefit is equal to return of premium + an interest percentage declared at policy issue

Underwriting

Simplified issue underwriting


IV

The Guaranteed Issue Plan

Guaranteed Issue Policies are known to have the highest premium payments. The great news about this product is just like its name, you are guaranteed to be approved. The carrier will reduce the policy limit and place certain age restrictions on the application. Predominantly Guaranteed Issue Policies do not come with additional add-on options. This product is typically reserved for clients with severe health issues.

If a death happens within the first two years carriers will offer the return of premium plus a predetermined interest rate.
(Health questions are a yes or no questionnaire via phone interview).

Benefit for Accidental Death

Guaranteed approval, no waiting period, full death benefit

Benefit for Non-Accidental Death

Waiting period, death benefit is equal to return of premium + interest rate
for a specified number of years

Underwriting

No Underwriting