Whole Life Policies You Qualify For

Just because you have made the decision to purchase a Whole Life Insurance Policy, doesn't necessarily mean you'll be able to get the best rate available. When you decide to fill out an application for a whole life insurance policy, the company does have the option to turn you down.

Level Benefit

If you qualify for the best rates you'll receive a level benefit. This means you get immediate coverage once you've been approved. You will begin growing cash value as soon as you begin paying premiums, your beneficiary will receive the full face amount should you die, and there is no waiting period for the policy to take effect.

Graded Benefit

With a graded policy, there is a waiting period before you're beneficiary is eligible to receive the full face value of the policy. This waiting period is typically between 1-3 years, depending on your health and the company. Within those first few years the policy the insurance company will not pay out the face value if you die. You will get a return of all premiums you've paid in plus 10% (on average). So everything you've paid into the policy your beneficiary will get back including the extra percentage. Once you make it past the waiting period, the policy will pay out the full face value to your beneficiary. 

Premium Levels

Your health matters a lot when it comes to buying a whole life policy. To get the gold standard, you must have gold standard health. If you have excellent health, a great medical record, and you're a non-smoker, your rate will be the lowest you can possibly get at your current age. 

If you have some health problems, but nothing too major you can get the next best rate. It will typically be more expensive than if you were completely healthy, but depending on the company you can get still accepted at a very good rate.

Major health problems like cancer, heart attack, stroke, etc. aren't accepted by most companies. They will be declined even with a graded policy. The insurance company doesn't want to take a risk with a large face value paid out very early into the policy due to known poor health. However there is always a company that will accept you no matter what your health. It will be the highest rate and will be graded and will come with a waiting period. 

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There are many benefits to buying into life insurance young. It prevents higher rates or risk of being medically uninsurable due to unexpected health problems. Rates increase every birthday, so it's best to lock in your rate when you're young to ensure it's always a low payment. It's also impossible to know if your health will change, so insuring you protect yourself before anything goes wrong means you're getting the best rate you possibly can.