A whole life insurance policy where the initial premium is less than standard straight life is known as a graded premium whole life plan. The premiums increase over the first several years until it reaches a point where the premiums level off from a graded format to a straight whole life.
Life Contract
A whole life insurance policy covers the insured for their entire life or until age 100. The benefits are paid out to a designated beneficiary on the contract upon death. The payments are tax free. A graded life or Modified whole life will have the same benefit structure. The only difference with those is the premium amount set up on the policy in the early years.
We are licensed in New York and most other states. Feel free to contact us with any question related to whole life or any other insurance product. We can put a licensed insurance professional of American Investment Training in touch with you.
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