Investing & Saving
The simplest alternatives to life insurance include investing money and or saving it. If you are able to set aside enough funds each year, you can very well never have to worry about holding a life insurance policy. For persons who start saving when they are young, they may find that they've reached middle-age with plenty of funds secured to provide for their family in the event of their untimely passing.
The same is true with investing. But plenty of financial advisors would agree that it makes sense to consider also holding a life insurance policy of some sort, so that your hard earned nest egg is preserved should something unpredictable cause your passing.
Mortgage Insurance
For most people, the largest debt and monthly bill they will carry is their mortgage. Life insurance plans are lucrative because they can provide the necessary funds to cover a mortgage payment or to pay off said debt if you pass away. But there are also mortgage insurance policies that can cover critical illness and even death, providing payment protection should the unthinkable occur.
These are plans that should be carefully reviewed and assessed for both cost and coverage. As you may find that the cost of the coverage is comparable to a more lucrative life insurance policy that may be more advantageous than the insurance offered to cover just your mortgage.
Accidental Death and Dismemberment (AD&D) Insurance
This insurance type is commonly offered by many employers but can also be found and purchased privately, too. It protects your family in the event of death or permanent dismemberment, with a set monthly amount or a flat payout option that can replace the income that could have been prospectively earned by you. In most cases, it will also cover final expenses as well. But, it's important to read the fine print and know just what coverage that you are getting and the cost, so you can compare its benefits to those offered by life insurance.
Choosing a life insurance policy is a big decision. Knowing that there are alternatives can be comforting. But for many people, the wiser decision is to get the coverage that they need at a locked in rate. Make sure you take the time to learn all of the options that you have beforehand, so you can make the best decision to safeguard your family's lifestyle.
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