Many look for life insurance as a financial safety net. However, if you’ve been rejected for life insurance in the past, then you’re probably looking for alternatives to your life insurance. An effective money management strategy is something that many individuals should be looking for, even in cases of life insurance not paying out.
Life insurance companies only make money for their shareholders when they don’t pay claims, as such many life insurance policies come with certain exclusions that allow companies to not pay out claims. These exclusions include a “Suicide Exclusion” if a beneficiary takes their own life, or a “Drug Exclusion” if a beneficiary died due to illegal drug use and/or even prescription drug use, among many others.
One alternative to life insurance is a guaranteed issue plan. Regular life insurance coverage is not necessarily guaranteed to the beneficiary. On the other hand, guaranteed issue plans don’t require a medical exam, and policies are offered to anyone who is eligible regardless of health. However, these usually come at a higher premium.
Another option is an asset-based or combination policy, which provides money for long-term care for yourself which regular life insurances wouldn’t necessarily cover. It can also provide a death benefit to your chosen beneficiaries if you haven’t capped off your long-term care benefits. Some of these policies also come with a money-back guarantee.
A third alternative is to ask your employer if they have any health benefits that could provide optional life insurance coverage. Types of coverage may depend on your salary or position. Keep in mind that you may have to undergo a medical exam to obtain this. In addition, losing your job or being fired may affect being able to keep these benefits.
If you’re looking for alternatives to life insurance, examine one of these options and see if they’re right for you.
About the Author
Veronica Baxter is a writer, blogger, and legal assistant operating out of the greater Philadelphia area. She frequently works with Boonswang Law, a busy life insurance attorney based in Philadelphia.