What Are the Alternatives to Life Insurance If You Are Declined?

Life Annuities
Insurance

¡¡¡¡For over 20 years I have been selling life insurance products. One thing particularly irked me about the industry as the years progressed was its lack of compassion or direction when an application for life insurance was declined.

There was no solution I was told.....

A decline was like you were branded a leper never able to get cover again at standard rates. Or if you were lucky at some time in the future you could reapply and perhaps be offered cover with a hefty loading - 200% or 300%. Almost without exception though the type of cover offered never adequately insured the situation.

Yes it irked me but I just moved on thinking I could offer no other solution.

Late in 1998 my business stumbled and in the chaos and lack of cashflow that ensued my own life insurance lapsed. I wasn't particularly worried when I found out as I was healthy and knew I could easily go get some more when the dust settled.

In 1999 and I still hadn't gotten around to getting more life insurance cover I was diagnosed with cancer.

Yes I had no life insurance cover and I had became one of the un-insurables.

Now a solution had to be found because it was MY FAMILY that would suffer it I died unexpectedly.

To understand how I happened on the solution it is important to grasp how the proceeds from a life insurance policy are used for an exit strategy such as death.

Simply the lump from the insurance is invested and the beneficiaries live off cashflow created by the interest earned. For example if the proceeds are $1million and the return is 5% the income would equal $50,000pa

No problem I thought..... I can't get the insurance but how can I create an asset worth $1,000,000 that would give me a cashflow of $50,000?
First I looked to traditional leveraged cashflow producing assets

Property - live off the rent. Great but I didn't have the capacity to borrow as my credit history was in tatters.

Shares - Ok but was going to take $2083 per month over 40 years to save a lump sum of $1million. I didn't have this amount of spare cash and I couldn't borrow to get more leverage as my credit history was shot.

Own a business - Franchising looked to be the best option with its built in systems and supply channels. And it would have been great one if I had the capacity to borrow money to meet the huge set up cost.

Okay back to square one.... wanted income stream, couldn't borrow to create it, knew I wanted a business system to ensure success.

That was when I was introduced to the poor mans franchise. Also know as network marketing the poor mans franchise had small or no set up costs. That suited me as there I couldn't get a loan. A proven business model and system. That suited me as it meant I would have a greater chance of having a positive return on the time I would need to invest into getting it up and running.

That was when the fun really began.

There were hundreds of networking companies with more coming available each day. Where to start?

I knew the best way to evaluate each company would be to create a checklist with all the important features I wanted in the company I would eventually work with.

Simon has 20+ years in marketing financial services and wealth creation concepts. He is a success coach and trainer of both consultative selling and attraction marketing. For a FREE copy of the 29 point MLM evaluation checklist I used visit http://asuperalternative.com.