Many people rely on the peace of mind provided by a life insurance policy, so it can be disheartening to learn that you have been denied or may not qualify. However, life insurance alternatives can still give you and your loved ones financial security. We are your resource for understanding alternatives to life insurance.
Reasons You Might Not Qualify for Life Insurance
Finding out you may be denied life insurance can come as a surprise. There are many things insurers will take into consideration, and any of the following could impact your ability to qualify:
- Dangerous occupation or hobbies
- Obesity
- High cholesterol
- Family history of cancer
- Past or current drug use
- High blood sugar
- Hepatitis
- HIV/AIDS
You may get denied if your income and assets do not match the size of the policy you are applying for. In the event that you do not qualify, double check all your paperwork to ensure everything is accurate regarding your medical history and other details.
Life Insurance Alternatives
Your life insurance alternatives will depend the regulations in your state along with your income, options available through your employer, and other factors. The following are some of the most common alternatives.
Graded Death Benefit Policy
Those who have pre-existing conditions like cancer, heart disease, Alzheimer’s Disease, or insulin dependency are most likely to be denied life insurance. A graded death benefit policy is typically used for senior citizens with medical conditions. It does not require a medical examination, which is ideal for people who have conditions that would make them ineligible or unable to afford life insurance.
The premiums are typically higher with graded death benefit policies because of the guaranteed coverage, but it can still protect the families of those with pre-existing conditions or other health risks.
Accidental Death & Dismemberment Insurance
An accidental death and dismemberment (AD&D) policy is occasionally offered through an employer but can also be purchased through some private insurance companies. It will not cover natural deaths but will still provide protection in the event of an accident, paralysis, loss of body parts, or loss of certain functions like eyesight or hearing. These policies are more cost-effective than other life insurance alternatives, but they includes exceptions and special circumstances.
Investments & Savings
One of the simplest ways to put away money for later in life is to start a savings account or take advantage of investments. Particularly if you start when you are young, your savings may be able to provide financial security for your loved ones. A financial planner can help you choose the best methods for investment if you choose this alternative to life insurance.
Maintain Peace of Mind with Life Insurance Alternatives
Planning for the future doesn’t have to be stressful. Even if you have been denied life insurance, our agency is your resource for life insurance alternatives. We will help you determine the best option to plan for the future and provide for your family.