Life Insurance For The Unemployed

Times have been tough. If you’re unemployed thanks to the pandemic, you’re living through an uncertain and stressful time, and you might be worried about taking care of your family if the unexpected happens. You should know that, even if you’re unemployed, life insurance is not out of reach for you. You can protect your family financially in the event of your passing, but the amount of life insurance you can buy depends on a few factors.

How Long You’ve Been Unemployed

Being unemployed is not an immediate disqualifier for buying a life insurance policy, but there are some factors that insurers will take into consideration when you apply if you’re not working. For example, being unemployed for a short time is more favorable in the eyes of life insurance companies than being long-term unemployed (27 weeks or longer), so you shouldn’t wait too long to apply for life insurance after losing your job. The longer you are unemployed, the less likely a life insurance company will be to provide you with coverage, because they will worry about how you intend to pay your premiums with no income. In addition, you will be more likely to be approved for a policy if:person with magnifying glass and the word job in the middle

  • You have a good skill-set and made a decent income not too long ago.
  • You have a history of steady employment and plan on working again.
  • You worked in an industry that has plenty of jobs.
  • You are recently unemployed and likely to work again.

If you are not looking for work, or are looking but cannot find a job, you could be denied coverage. In addition, if you are unemployed due to a disability, you will not qualify for traditional life insurance that requires a medical exam , but you can try a no medical exam life insurance policy

But what if you left your job to be a stay-at-home parent? That will be viewed slightly differently by insurance companies: even though you are technically unemployed, you will qualify for life insurance equal to that of a working spouse. 

Assets You Have

If you have assets you can live on while you are unemployed, you are also more likely to be approved for  a policy. As we already mentioned, life insurance companies do not want to take the risk of you not paying your premiums and lapsing on your policy, so they will want to know if you have any assets to cover your premium payments. 

When Applying:

If you are unemployed and looking for a life insurance policy, the best way to get approved is by: illustration of an orange person holding up multiple resumes

  • Showing you are ready to work and are looking for a job. This can include having a list of jobs you are applying for to show your unemployment will be short-term.
  • Providing any records of assets you have to show you can keep up with your premium payments, even when you are not working.
  • Applying for a smaller amount of coverage. Instead of trying to go for a million dollar policy, consider less coverage, which will be more affordable and attainable.
  • Looking at different types of policies. There are many different kinds of life insurance policies that you can apply for, from term life to final expense life insurance. The best way to determine which is best for you is by comparing policies from different companies, especially since every company has different guidelines. 

Having life insurance is important for protecting your family’s financial future, especially when you are unemployed and don’t have a steady source of income for your family should the worst happen. If you need life insurance, the best way to get a policy that suits your needs is by using online tools, or speaking with an agent. We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

Leave a Reply

Your email address will not be published. Required fields are marked *