What’s Next if You Can’t Afford Insurance?

If you’re denied insurance, there are still options available to get the coverage you need.

It doesn’t take a lot to realize that these are difficult times in America. Despite a turning of fortunes and slight up ticks in the economy and job growth, the Great Recession has still left many families and individuals on a very tight budget with what can feel like little to no opportunities for a way out of financial hardship. With many more pressing concerns at the forefront of people’s consciousness, such as groceries, electricity and gas bills, automotive repairs and home-related expenses, people are forced to draw very clear lines between necessities and expendable items. Entertainment, trendy clothes and dining out can all take a back seat to simple stability or even survival, but should assets for the future, such as insurance, be allowed to fall by the wayside? There are few things more deflating than being denied in your application for a credit card or hearing a no for insurance. If you do, though, you need to analyze your needs and resources, and decide on a next step towards a better future.

If you are contemplating doing without car insurance, you won’t have to wait to hear a no for insurance from an agency. If you feel that you can’t afford the upkeep of a car in general, like the monthly insurance premiums, gas and inevitable repairs and maintenance, do your best to take public transportation if it if at all possible. If you already have a car, aim for simple liability coverage, which is the state required minimum. This is only an option if you own your car outright, so you may consider switching to an older, less expensive used car if you currently drive a leased or financed vehicle.

Life insurance can be considered by many a superfluous expense, and if you don’t have one in the first place, it would be pretty difficult to make the decision to have one. If you do have life insurance during exceedingly hard times, it can be tempting to cash in on your policy, or let it lapse. However, you should definitely consider the many risks of such a move. You paid a certain premium when you purchased your insurance, which was based on your age and health at the time. Years down the line, if you let it lapse, realize that when and if you decide to pick up another policy, you will almost certainly be facing higher rates because of your changed situation. There are more options for you if you have a whole life insurance policy, including forfeiting coverage in order to collect cash, switching to an extended term policy or, depending on the insurer, you may be allowed to reinstate your policy if you do it within five years of letting it lapse.

If you can’t afford health insurance, and you’re definitely not alone, there are many options for you depending on the laws of your state. The most obvious is Medicaid, which provides for low income families to receive health care. If you received a no for insurance because of pre-existing conditions, you still have options as well. Federally qualified health centers are private institutions that are partially funded by the government, and provide care based on your income. They are generally little different from a regular doctors office, and provide many of the same types of care.

Posted by on Jul 24, 2013 in Blog | 0 comments
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