Answer to Readers Question: Graded life insurance benefit means that the 1st year you get say 33% of face value of the life insurance policy, 2nd year 66% and finally the full face value in the 3rd year. This is generally for people with serious medical conditions that otherwise would not be able to get coverage.

Graded benefit policy means a death benefit that increases with the age of the insured. Graded benefits may increase gradually and then level off, or they may increase sharply before becoming level. This type of coverage is most common in juvenile life insurance, and guaranteed issue life insurance for seniors.