What is a key feature of "gradually increasing" premiums in graded policies?

Gradually increasing premiums in graded policies are designed to start at a lower amount and then increase over time. This feature is particularly beneficial for policyholders who may find it difficult to afford higher premiums at the onset, allowing them to secure coverage while accommodating their financial situation. This type of structure can help individuals budget for premium payments, ensuring they can maintain their life insurance coverage while their financial situation potentially improves.

The gradual increase in premiums reflects the understanding that individuals may want to ease into higher payment amounts as their income or financial stability grows. This approach contrasts with fixed premiums, which do not fluctuate, or sharply increasing premiums, which can pose a sudden financial burden. It also differs from decreasing premiums, which would not apply to graded policies as they intentionally increase. Therefore, the key element of starting low and rising ensures that the policy remains accessible while still providing adequate coverage over time.