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Alternatives to Life Insurance
Having options is important. Maybe you think that traditional life insurance policies won’t work for you, or maybe you fear declines and high premiums for coverage.
This is why we have compiled a list of some popular alternatives to life insurance. These alternatives, like life insurance, are not for everyone, so be sure to speak to a financial adviser or a life insurance agent before choosing the best option for you!
Why You Need Life Insurance
In order to figure out which alternatives are right for you, you need to first ask yourself why you need life insurance. Typically, an individual needs life insurance to financially protect family members in case he or she is no longer around to do so.
Life insurance can be used to help pay for your kid’s school or to pay off your mortgage, credit card and other loan debts. These debts don’t disappear in the event of your death, and you don’t want to leave your family members paying for them.
What to Do If You Cannot Get Life Insurance
We want to stress that, while it is rare that a client cannot find suitable coverage, sometimes it does happen. Occasionally, a client is deemed too high risk for carriers or simply wants to look into alternatives.
If you cannot obtain a life insurance policy, we advise you to speak to one of our agents first. Our agents’ expert knowledge of high risk clients – and which insurers cover high risk clients – means you don’t have to go unprotected, no matter your situation.
You can also talk to one of our trusted agents about which life insurance alternatives may be right for you.
Before researching alternatives to life insurance coverage, you should be sure to ask yourself the following questions:
Am I being realistic?
Can I lower my risk to earn a better rating?
How much coverage do I need?
Have I exhausted all of my options?
If You Are Looking For Alternatives To Life Insurance, We Can Help! Here Are A Few Of Your Options:
PrePay Your Final Expenses:
You always have the option of taking care of your funeral arrangements before the time comes. Burial plots or cremation can all be planned in advance. Be warned: final expenses are not cheap. If you choose to go this route, you could be looking at prices averaging between $7,000 and $10,000.
Save:Open a tax-advantaged Roth IRA account or a 401(k) account to help you save for retirement. You can also open a regular savings account to help you plan for the future. While it is always a good idea to save your money, you never know what the future can bring, which may make it difficult to determine how much money to save for your loved ones.
Critical Illness Insurance:
Critical Illness coverage is designed to pay a lump sum of money if the holder is diagnosed with a specific disease. These diseases are predetermined and written in the insurance policy. Typically, you may find that these policies aren’t worth their costs (which can amount to up to $300/month!) and you will still have to go through an underwriting process.
So, if you fear declines from a medically underwritten insurance policy as your main reason for seeking an alternative to life insurance, this type of coverage is not for you. Additionally, you may not even be able to use the coverage if you happen to have an illness not listed on the policy.
You could always invest your money in stocks or bonds, which will earn dividends that can help you save for the future. The upside? If the market is doing well, you could earn a lot of money. The downside is that you will be relying on a notoriously shaky market for your family’s financial future, and you could leave them unprotected. Be sure to speak to a trusted financial adviser before investing your assets!
We constantly stress that there is a life insurance policy available for everyone, no matter their risk; however, we know that – on the rare occasion – an individual may find themselves unable to qualify for insurance or may not find a policy right at this particular time.
Here to Help!
This is where an agent can help. We are not just here to sell your life insurance.
Our Gold Coast agents can help you compare life insurance policies with alternative options out there.