Graded benefits may increase gradually and then level off, or they may increase sharply before becoming level.
For example, you may purchase $25,000 of graded life insurance, but you have limited death benefits the first two years you are insured, maybe a 20% payout ($5,000) on the total coverage if you were to pass away before you were insured for at least 2 years.
This type of life insurance coverage is most common in juvenile life insurance, life insurance plans for seniors, people with health conditions, or those who have been turned down for life insurance.
Learn more about life insurance with graded death benefits.