Life InsuranceSeen in 1 question
Graded Premium Whole Life
Whole life with premiums that increase each year for a period before leveling, starting lower than straight life and ending slightly higher.
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A whole life policy is issued with premiums that start lower than the level whole life premium and increase each year for a stated number of years, after which they remain level for the rest of the insured's life. This product is best described as:
Graded premium whole life — Graded premium whole life (also called modified premium whole life) charges lower premiums in the early years, with the premium increasing each year for a defined period (commonly five to ten years), then leveling off at a higher rate for the insured's lifetime. It keeps the permanent, level-death-benefit features of whole life while reducing early-year premium outlay for applicants who expect income to grow. It is not a term product.
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