They are a type of life insurance that pays out a limited death benefit early in the policy, but provides 100% death benefit coverage after a certain period of time.
For example, some graded life insurance policies may only pay back the premiums you have paid if you die within the first 2 years of being insured.
However, of the death of the insured occurs after the first two years, then the full death benefit is paid out to your beneficiary.
Many guaranteed issue life insurance policies provide graded death benefits.
Here's how to learn more about graded benefit life insurance plans.